Inside Bar Explosion

Category: Price Action, Volatility Compression, Breakout Detection

🔍 Overview

This indicator detects multi-bar inside candle compressions (“inside bar coils”) and marks powerful breakout moments that follow.
It highlights when volatility contracts inside a large “mother candle” and then suddenly explodes with a bullish or bearish breakout backed by volume confirmation.

⚙️ How It Works

Mother Candle:

Detected when a large candle (range > defined %) appears with above-average volume.

Compression Phase:

Consecutive candles stay completely within the range of that mother candle.

The longer the compression, the tighter the coiling pattern.

Explosion Candle:

A candle breaks above or below the compression range,

Has a large range and a volume spike, confirming breakout direction.

💡 Visual Cues

🟨 Yellow Highlight: Mother Candle

🔵 Blue Zone: Compression (Inside Bar Cluster)

🟢 Green Background: Bullish Explosion

🔴 Red Background: Bearish Explosion

🚀 Label: Bull breakout with days in compression

💥 Label: Bear breakdown with days in compression

⚡ START: Marks final compression candle before breakout

📊 Table (Top Right): Live compression stats (days, range %, volume ratio)

🧠 Parameters
Setting Description
Minimum Inside Bars Minimum candles inside the mother candle to qualify as compression.
Maximum Inside Bars Limit to prevent invalid long compressions.
Mother Candle Min Size (%) Defines how large a candle must be to be considered a mother candle.
Explosion Candle Min Size (%) Minimum % range for valid breakout candles.
Volume Spike Multiplier Required volume increase vs. average for breakout validation.
Show Labels / Box Toggle visual elements on/off for clarity.
🚨 Alerts

⚡ Compression Start: New coiling phase detected.

🚀 Bull Explosion: Bullish breakout with volume confirmation.

💥 Bear Explosion: Bearish breakdown with volume confirmation.

📈 Use Cases

Identify volatility squeezes before major breakouts.

Detect range-bound periods leading to trend initiation.

Combine with moving averages or RSI for higher confidence setups.

⚠️ Notes

Works best on daily or 4-hour charts.

Works for stocks, crypto, forex, or indices.

Does not repaint — signals are confirmed on bar close.