Hodie Smart Inside Bar

The Hodie Smart Inside Bar indicator automatically detects and visually highlights inside bars — candles fully contained within the range of the previous (parent) candle.

How the indicator works:


Inside Bar Identification:
The indicator analyzes each candle and checks if its high is lower than the previous candle’s high, and its low is higher than the previous candle’s low. If this condition is met, the candle is considered an inside bar.

Size Filtering:
To filter out small and insignificant consolidations, the indicator compares the size of the parent candle’s range to the inside bar’s range. Only if the parent candle is significantly larger (2 times or more — adjustable parameter), the inside bar is considered significant.

Zone Drawing:
For each detected inside bar, the indicator draws a rectangular zone bounded by the parent candle’s high and low. This zone automatically extends to the right as new bars appear until the price moves outside the parent candle’s range.

Zone Completion:
Once the price closes above the parent candle’s high or below its low, the zone is considered complete and stops extending.

Visual Aids:
If enabled, the indicator can shade the background of the current inside bar for additional visual emphasis.
A label with the text "IB" appears above the inside bar candle on the chart for easier identification.

Alerts:
Supports alerts when a new inside bar forms.
Alerts help traders notice important signals promptly.
To activate, create an alert on the indicator with the condition “New Inside Bar”.

Benefits of the Indicator:
Inside bars often signal consolidation and potential liquidity accumulation, which may be followed by a strong impulsive breakout. This indicator helps traders quickly identify consolidation zones and prepare for possible price moves.