The MT4 indicator with inner and outer bars is a simple indicator that colors the candles of both the outer and inner bars. The inner bar indicates the candle at the close, while the outer bar refers to the candle at the open. The indicator colors only the body of the candle, not its borders.
The indicator plots an inner bar when a larger bar surrounds a smaller bar. It can be either an uptrend or a downtrend. If the highest bar is higher than the previous highest bar, the indicator will plot an outer bar. Below is an image showing the outer and inner bars of the chart.
Buy/Sell signals for the outer bar indicator
The chart above shows the buy and sell signals for this indicator. The inner and outer lines are very important for traders to determine the direction of the trend. When the outer and inner lines appear, the trader must enter between support or resistance levels. If the bar lies between these levels, it indicates a stronger trend.
When the bars appear in between, the trader should wait for the price behavior to move up or down before taking its position. To further confirm the signal, traders can use other indicators in addition to this one.
The direction of the trend is indicated by the Inside Outside Bar Indicator. It pinpoints the inside and outside lines. The indicator plots bars to indicate support or resistance levels. You can also download the indicator for free from our website.