Outside Bar is a Client Side VTL Indicator to mark outside bars on chart. The indicator plots two arrows above and below the outside bar. Outside bar is bar that has a higher high and lower low than the preceding bar. It is a short-term expansion in price range or volatility. Outside bars form at the end of a trend and on breakout moves from consolidation in a trending period. Trader must use a discretionary approach in picking the outside bar setups for trading. In a trading range outside bars breakouts may be false signals.
The method to trade outside bars is to open position in the direction of outside bar’s high or low breakout. It is better to open trades when breakout happens in the direction of the outside bar. On bullish outside bar, look for upward breakout, and for a bearish outside bar, look for downward breakout of the outside bar. Trader must use discretion in picking outside bar trading setups. There may be many outside bars in chart but they all does not make good breakout trades. Outside bars formed at key support/resistance level are good setups. Breakout from consolidation with an outside bar setup is another good trading setup. See the image attached.
