Outside Bar Trading System -MANUAL – Trading Strategies – 27 February 2026

1. INTRODUCTION

OutsideBarTradingSystem 1.00

2-Bar Continuation Sample with Vary-Engulfment Evaluation

Creator: Ich Khiem Nguyen | MQL5: https://www.mql5.com/en/customers/khiemni/vendor

OutsideBarTradingSystem detects Outdoors Bar candlestick patterns in your MetaTrader 5 charts routinely. The indicator evaluates every accomplished bar pair towards 4 structural gates, scores surviving patterns throughout six weighted high quality components, and locations pending purchase cease or promote cease orders on the breakout stage when a sound Outdoors Bar is confirmed. Entry worth, cease loss, and take revenue ranges are drawn instantly on the chart so you’ll be able to assess the commerce alternative reasonably than carry out the calculations manually.

What Is an Outdoors Bar Sample?

An Outdoors Bar is a two-candle continuation formation the place the second candle’s vary utterly encompasses the primary candle’s vary. The second candle’s excessive exceeds the primary candle’s excessive, and the second candle’s low falls under the primary candle’s low. This vary enlargement alerts renewed volatility and directional dedication within the route of the sample’s context (uptrend for bullish Outdoors Bar, downtrend for bearish Outdoors Bar).

The Outdoors Bar represents worth vary enlargement after consolidation. Reasonably than instantly closing throughout the first candle’s vary (which might point out indecision like an Inside Bar), the second candle’s vary enlargement establishes that patrons or sellers have seized management and pushed worth to new extremes. This construction typically precedes continued motion within the established pattern route.

Bulkowski’s analysis ranks the Outdoors Bar at place 2 amongst continuation patterns, with a 58% win price in bull markets when the breakout is upward. The Outdoors Bar is a reversal of the Inside Bar sample — the place Inside Bar represents consolidation, Outdoors Bar represents enlargement and momentum dedication.

Bullish Outdoors Bar

Seems throughout an uptrend or after a consolidation breakout above a resistance stage. Bar 1 is any candle (massive or small). Bar 2 engulfs bar 1’s complete vary: HIGH_2 > HIGH_1 AND LOW_2 < LOW_1. Each bars sometimes shut larger (bullish physique coloration), confirming that patrons preserve management. Entry is a pending purchase cease order positioned barely above bar 2’s excessive (HIGH_2 + 0.05×ATR), triggering if worth breaks above the engulfing candle.

Bearish Outdoors Bar

Seems throughout a downtrend or after a consolidation breakdown under a help stage. Bar 2 engulfs bar 1’s complete vary. Each bars sometimes shut decrease (bearish physique coloration), confirming that sellers preserve management. Entry is a pending promote cease order positioned barely under bar 2’s low (LOW_2 – 0.05×ATR), triggering if worth breaks under the engulfing candle.

Uptrend Context Detection

The indicator checks the pattern previous to the sample formation. If the prior bars present larger lows and better highs, the sample is assessed as a bullish Outdoors Bar continuation. The context detection examines the three bars earlier than bar 1 to find out pattern route alignment.

How the Indicator Finds Patterns

The indicator evaluates every potential two-bar sample towards 4 sequential gates. All 4 should cross for a sign to be generated.

1. Vary Engulfment gate: Bar 2’s excessive should exceed bar 1’s excessive, and bar 2’s low should fall under bar 1’s low (HIGH_2 > HIGH_1 AND LOW_2 < LOW_1). This confirms the vary enlargement that defines the Outdoors Bar construction.

2. Bar 2 Vary Measurement gate: Bar 2’s whole vary should symbolize at the very least the minimal required vary/ATR a number of (Normal: 0.50×ATR, Strict: 0.60×ATR). This confirms that bar 2 is a big range-expanding candle, not a small engulfing spike.

3. Bar 2 Physique Measurement gate: Bar 2’s physique should symbolize at the very least the minimal required physique/ATR a number of (Normal: 0.20×ATR, Strict: 0.25×ATR). This ensures the candle has significant construction past simply wicks, decreasing whipsaw threat on pure spike patterns.

4. High quality gates: Bar 2’s relative vary (bar 2 vary / bar 1 vary) should exceed the minimal threshold (Normal: 1.20×, Strict: 1.30×), and physique ratio should be adequate (Normal: 0.40, Strict: 0.45). These gates verify that the engulfment is significant and the candle is not only marginally bigger.

Solely candles passing all 4 gates proceed to high quality scoring and sign registration.

High quality Rating — Evaluating Sample Power

Each sample that clears detection receives a high quality rating between 0.00 and 1.00. Six components contribute to this rating, every weighted by its contribution to the Outdoors Bar’s continuation reliability.

High quality Components

QF-1 and QF-2 carry equal weight (0.20 every) as a result of each contribute to the core structural requirement: vary enlargement. Vary/ATR measures absolute volatility enlargement; Relative Vary measures enlargement relative to the instantly previous candle.

Rating Grades

• Grade A (0.80 – 1.00) — Glorious: Giant vary enlargement with strong physique construction and robust pattern alignment
• Grade B (0.60 – 0.79) — Good: Dependable Outdoors Bar with clear vary engulfment and average physique high quality
• Grade C (0.40 – 0.59) — Common: Legitimate construction however vary enlargement is modest; use with extra affirmation
• Grade D (0.20 – 0.39) — Beneath Common: Marginal setup; larger false breakout threat
• Grade F (0.00 – 0.19) — Poor: Keep away from buying and selling these alerts

High quality Threshold

The default minimal high quality is 0.30. Adjusting this threshold modifications which patterns seem on the chart:

• 0.50 – 0.65: Reveals solely essentially the most clearly expanded Outdoors Bars with robust vary/ATR and strong physique metrics — fewer alerts with larger per-signal high quality
• 0.20 – 0.30: Reveals extra alerts together with weaker enlargement examples — helpful for analysis or finding out the sample throughout totally different market situations
• Tip: Begin with the default 0.30 in your chosen image and timeframe and observe a number of dozen alerts earlier than adjusting

Entry Mode: Pending

Outdoors Bar patterns use pending purchase cease or promote cease orders positioned on the breakout stage reasonably than instant entry at bar shut. When a sound Outdoors Bar is confirmed, the system creates a pending order at HIGH_2 + 0.05×ATR (bullish) or LOW_2 – 0.05×ATR (bearish). The order prompts provided that worth breaks above (bullish) or under (bearish) that stage, capturing the breakout transfer.

This displays the character of the sample: bar 2’s vary engulfment establishes enlargement potential, however the precise directional dedication happens at breakout. Ready for the breakout ensures entry aligns with market consensus reasonably than coming into speculatively at bar shut.

Buying and selling Ranges

Bullish Outdoors Bar:

• Entry = Pending Purchase Cease at HIGH_2 + 0.05×ATR
• Cease Loss = sample low − 0.25×ATR

Bearish Outdoors Bar:

• Entry = Pending Promote Cease at LOW_2 – 0.05×ATR
• Cease Loss = sample excessive + 0.25×ATR

The sample low/excessive is the minimal/most of bar 1 and bar 2. The cease loss buffer of 0.25×ATR is positioned past this excessive. A break past the sample excessive invalidates the continuation premise.

Take revenue ranges are calculated from entry utilizing configurable risk-reward multiples (default: 1R, 2R, 3R, 4R from entry to cease distance).

What You See on the Chart

When an Outdoors Bar sample passes all detection gates and high quality filters, the indicator attracts the next:

Sign Markers

• Arrow icons: Upward inexperienced arrows mark bullish Outdoors Bar patterns; downward crimson arrows mark bearish patterns. Grey arrows point out alerts blocked by an energetic filter.
• High quality labels: A numeric rating (e.g., “0.65”) seems close to every sign, exhibiting how the sample ranked throughout all six high quality components.

Buying and selling Strains

• Entry line: An orange horizontal line on the pending order stage — HIGH_2 + 0.05×ATR (bullish) or LOW_2 – 0.05×ATR (bearish)
• Cease Loss line: A crimson horizontal line labeled “SL” — positioned past the sample excessive with an ATR buffer
• Take Revenue traces: As much as 4 inexperienced horizontal traces labeled TP1 by means of TP4, spaced at configurable R:R multiples from the entry stage

Visible Zones

• Sample spotlight: A shaded rectangle spans each bars of the Outdoors Bar, making it simple to determine which pair triggered the sign. The chance zone between entry and SL is shaded in crimson; reward zones between entry and every TP stage are shaded progressively lighter.
• Monitoring dots: Small coloured dots replace because the sign state modifications — white for pending (order positioned, awaiting breakout), yellow for energetic (breakout triggered, commerce dwell), inexperienced for goal hit, crimson for cease hit.

Sign Lifecycle

1. Pending: Pending purchase cease or promote cease order is positioned at breakout stage — ready for worth to interrupt above/under
2. Lively: Breakout triggered, commerce entry occurred, commerce is dwell
3. Goal Hit: Worth reached a take revenue stage
4. Cease Hit: Worth reached the cease loss

Settings You Can Alter

Detection Parameters

Detection Preset Values

Customized Threshold Parameters

Settings Ideas

• Start with the Normal preset and default high quality threshold in your chosen image; observe at the very least two to a few weeks of alerts earlier than adjusting
• If Normal produces too many alerts, increase Min High quality to 0.50 reasonably than switching to Strict — this preserves detection sensitivity whereas filtering out weaker examples
• The vary enlargement gate (0.50× ATR Normal) permits average enlargement; on risky devices, improve to 0.60 for extra pronounced vary dominance
• Keep away from chopping the SL buffer under 0.20×ATR — the sample excessive is the logical invalidation level, and a few retesting is regular earlier than the transfer develops

Greatest Timeframes and Markets

Really helpful Timeframes

• H1 — High quality: Excessive | Frequency: Medium | Greatest for: Day merchants looking for clear range-expansion setups at intraday help and resistance; beneficial place to begin
• H4 — High quality: Excessive | Frequency: Decrease | Greatest for: Swing merchants who need well-formed Outdoors Bar patterns with robust follow-through potential
• M15 — High quality: Medium | Frequency: Excessive | Greatest for: Scalpers wanting frequent alerts throughout energetic session hours
• D1 — High quality: Highest | Frequency: Low | Greatest for: Place merchants looking for textbook Outdoors Bar formations at main every day construction ranges

Greatest Markets

• XAUUSD (Gold): Outdoors Bar patterns on H1 and H4 steadily mark momentum continuation factors, significantly throughout London and New York session crossovers
• Main foreign exchange pairs (EURUSD, GBPUSD, USDJPY): Outdoors Bar formations are frequent after vary breaks, particularly close to spherical numbers and session open costs
• Indices (US30, NAS100): Outdoors Bar patterns close to prior highs can mark continuation entry factors after breakouts
• Oil (USOIL): Sturdy Outdoors Bar formations seem after sharp upward or downward strikes on H1 and H4

The indicator works on any image and timeframe. H1 with the Normal preset on XAUUSD is the beneficial beginning configuration.

Getting Began — Fast Setup

1. Open MetaTrader 5 and cargo a chart (XAUUSD on H1 is an effective place to begin)
2. Within the Navigator panel (Ctrl+N), increase Indicators → Customized and find OutsideBarTradingSystem
3. Drag the indicator onto the chart
4. Within the settings dialog, choose Detection Preset (Normal beneficial for first use) and click on OK — the indicator will scan historical past and show detected patterns instantly
5. Observe the alerts: inexperienced upward arrows point out bullish Outdoors Bar patterns; crimson downward arrows point out bearish patterns
6. Examine the standard rating on every sign — deal with patterns scoring 0.50 or larger when beginning out
7. Elective: Allow alerts within the ALERTS part to obtain notifications when new patterns kind in real-time

All Options at a Look

• Computerized bullish and bearish Outdoors Bar two-candle detection on any image and timeframe
• 4-gate structural detection: vary engulfment, bar 2 vary/ATR, bar 2 physique/ATR, relative vary and physique ratio high quality gates
• 6-factor weighted high quality scoring (vary/ATR 0.20, relative vary 0.20, CLV 0.20, physique ratio 0.15, pattern alignment 0.15, physique coloration 0.10)
• Development context detection utilizing 3-bar prior worth motion and directional evaluation
• 3 detection presets: Normal, Strict, Customized (user-defined thresholds)
• Pending purchase cease or promote cease entry at breakout stage (not instant)
• Sign states and lifecycle monitoring
• High quality filter to suppress weak patterns under threshold
• Excessive zone filter (overbought/oversold rejection)
• Stoploss hunt filter (liquidity sweep validation)
• Reverse sign filter (stop conflicting alerts)
• Threat/Reward with 3 cease loss strategies (Donchian Channel, ATR, Sample)
• As much as 4 take revenue ranges (TP1-TP4) at configurable R:R ratios
• Donchian Channel trailing cease loss
• MTF Scanner (as much as 150 symbols × 8 timeframes)
• Market construction evaluation (BOS / CHOCH)
• 4-channel alert system (popup, sound, push, electronic mail)
• Sign statistics dashboard
• Skilled chart themes (Darkish, Mild, Customized)
• EA sign buffers for automated buying and selling

For detailed guides on every characteristic, see the MANUAL included with the indicator.

Widespread Questions

Q: What’s the distinction between Outdoors Bar and Inside Bar?

Inside Bar represents consolidation and indecision: bar 2’s vary is totally contained inside bar 1’s vary (HIGH_2 <= HIGH_1 and LOW_2 >= LOW_1). Outdoors Bar represents enlargement and dedication: bar 2’s vary utterly accommodates bar 1’s vary (HIGH_2 > HIGH_1 and LOW_2 < LOW_1). Inside Bar typically precedes a breakout; Outdoors Bar typically confirms a breakout has begun.

Q: Why does the indicator use pending orders as a substitute of instant entry?

The Outdoors Bar’s defining characteristic is that bar 2’s vary expands past bar 1’s extremes — the enlargement sign happens at bar shut, however the precise directional dedication and affirmation of continuation happens when worth breaks above (bullish) or under (bearish) that vary. Ready for the breakout ensures entry aligns with market consensus that the enlargement is significant reasonably than coming into speculatively at bar shut.

Q: How do I distinguish bullish from bearish Outdoors Bars?

Bullish Outdoors Bars sometimes happen throughout uptrends with each bars closing larger (bullish physique coloration) and are entered with purchase cease orders above the excessive. Bearish Outdoors Bars sometimes happen throughout downtrends with each bars closing decrease (bearish physique coloration) and are entered with promote cease orders under the low. The indicator’s route filter and pattern evaluation detect this context routinely.

Q: What does “pattern alignment” imply for Outdoors Bar?

The indicator checks the three bars earlier than bar 1 of the potential sample to determine whether or not an uptrend or downtrend is in place. If bars are making larger highs and better lows, an uptrend is established; if making decrease highs and decrease lows, a downtrend is established. Bullish Outdoors Bars rating larger when forming throughout confirmed uptrends; bearish Outdoors Bars rating larger throughout downtrends. This context detection aligns alerts with the continuation premise.

Q: Why does the indicator place breakout orders above the excessive as a substitute of precisely on the excessive?

Purchase cease orders are sometimes positioned barely above (sometimes HIGH_2 + 0.05×ATR) to make sure the order triggers cleanly on true breakout momentum reasonably than on minor wicks or bid/ask unfold noise on the precise excessive. This buffer improves entry high quality by requiring barely extra conviction earlier than triggering.

Q: What if a number of patterns kind shut collectively?

If a number of Outdoors Bar patterns kind on close by bars, the spacing filter prevents them from all showing as alerts. The Min Bars Between Patterns setting (default: 3 bars) ensures that solely the highest-quality sign is proven when patterns cluster. Alter this setting should you want to see all patterns no matter spacing.

What’s New — Model 1.00

That is the preliminary launch of OutsideBarTradingSystem. Key options embody:

• Outdoors Bar bullish and bearish two-candle detection utilizing 4-gate structural validation
• 6-factor weighted high quality scoring with balanced deal with vary enlargement (0.40 weight mixed) and construction high quality
• Development context detection from 3-bar prior worth motion to tell apart bullish from bearish Outdoors Bars
• Normal and Strict presets, plus absolutely customizable Customized threshold mode
• Pending purchase cease or promote cease entry at breakout stage above/under the engulfing candle
• 7-layer filter chain (High quality, Excessive Zone, Path, Stoploss Hunt, Sign Zone, Market Construction, Reverse Sign)
• Multi-timeframe scanner protecting as much as 150 symbols and eight timeframes concurrently
• Automated Entry/SL/TP ranges with Donchian Channel trailing cease
• 4-channel alert system (popup, sound, push notification, electronic mail)
• EA sign buffers enabling automated buying and selling methods to devour Outdoors Bar alerts through iCustom()
• Skilled chart themes (Darkish, Mild, Customized) for prolonged buying and selling periods

Getting Assist

You probably have questions or want help:

Able to Begin?

OutsideBarTradingSystem identifies the structural second when worth vary expands past the prior bar’s extremes, signaling renewed volatility and directional dedication. Connect the indicator to your chart, begin with the Normal preset on XAUUSD H1, and observe how the vary enlargement aligns with the momentum strikes you’ll determine manually.

Pleased buying and selling!

Ich Khiem Nguyen

OutsideBarTradingSystem 1.00 — Created 2026-02-24