Inside Bar + Mother Bar

📘 Inside Bar + Mother Bar + HTF Trend Filter
Complete Usage Guide

1️⃣ What This Indicator Does
This system identifies:
Price consolidation (inside bars)
Directional trend alignment (LTF + HTF)
Breakouts from consolidation in trend direction
Visual and alert-based trade triggers
It is a trend-following breakout system.

2️⃣ Indicator Components
🔹 A. Moving Averages (Trend)
Orange EMA → Current chart timeframe trend
Blue EMA → Higher timeframe trend
Interpretation:
Price above EMA → Bullish
Price below EMA → Bearish

🔹 B. Inside Bar

An inside bar forms when:
High < Previous High
Low > Previous Low

Visual:
Green triangle ▲ = Bullish inside bar
Red triangle ▼ = Bearish inside bar
Blue square on prior candle = Mother bar

Meaning:
Market is compressing and preparing for expansion.

🔹 C. Mother Bar
The candle before the inside bar.
Its:
High = Resistance level
Low = Support level
Breakouts are measured from these levels.

🔹 D. Breakout Arrows
Green arrow ↑ → Bullish breakout
Red arrow ↓ → Bearish breakout
Appears only when:
Price breaks mother bar
AND trends are aligned

3️⃣ Dashboard Explained
Field Meaning
LTF Trend Current timeframe trend
HTF Trend Higher timeframe trend
Aligned Both trends same direction
Inside Bar Consolidation detected
Breakout Valid signal triggered
Colors

Green = Bullish / Yes
Red = Bearish / No
Gray = No signal

4️⃣ Trade Entry Rules
✅ Bullish Trade

LTF Trend = Bullish
HTF Trend = Bullish
Inside Bar = Yes
Price breaks above mother high
Green arrow appears
➡ Enter Buy at candle close or breakout retest.

✅ Bearish Trade
LTF Trend = Bearish
HTF Trend = Bearish
Inside Bar = Yes
Price breaks below mother low
Red arrow appears
➡ Enter Sell at candle close or retest.

5️⃣ Stop Loss Placement
Conservative
Opposite side of mother bar
Aggressive
Inside bar high/low
Example (Buy):
Entry: Break above mother high
Stop: Below mother low

6️⃣ Take Profit Methods
Option 1 – Fixed R:R
1:2 or 1:3 Risk-Reward
Option 2 – Structure
Previous high/low
Supply/Demand zone
Option 3 – Trailing
Trail behind EMA

7️⃣ Best Timeframe Combinations
Trading Style Chart HTF
Scalping 5m 1H
Day Trading 15m 4H
Swing 1H Daily

8️⃣ Risk Management Rules
Risk per trade: 1% or less
Max 2–3 trades per session
Skip signals near major news

9️⃣ When NOT to Trade
❌ Dashboard shows trends not aligned
❌ Inside bar forms inside heavy chop
❌ Very small mother bar (low expansion potential)

🔁 Typical Workflow
Check dashboard alignment
Wait for inside bar
Mark mother bar
Wait for breakout arrow
Enter → Set SL → Set TP

🧠 Strategy Philosophy
This indicator exploits:
Compression → Expansion → Trend Continuation
It avoids guessing direction and waits for:
Trend + Structure + Breakout = High probability trade