This indicator plots the Weekly inside bar and 3 Weekly tight close.
i : Weekly inside bar
- : Weekly tight close
1. Weekly inside bar (WIB) Which shows the price contraction where the current bar's range is lower than the previous bar's range
Conditions:
Current bar's low is higher than previous low and high less than the previous bar
Range of the current bar should be at least 30% less than the previous bar (Can be modified in the input settings)
Distance between Current bar's low and 50 D Simple Moving average should be at least less than 5% (Can be modified in the input settings)
sometimes low or high of current bar could be few points fluctuated from the previous so tolerance percentage has been set to 1 (Can be modified in the input settings)
Candle range should not be more than 10%. More the compression in the candle better it is for taking a position
Position: Long could be initiate when the high of the current bar is broken
2. 3 Weeks Tight Close (3 WTC) where the last three weeks close are within 1.5% range
Conditions:
Last three weeks close is with in 1.5% range (Can be modified in the input settings)
Position: Long could be initiated current market price
Note: Below conditions apply for both the patterns
Close should be higher than Moving Average(40)
Volume should be less than Volume moving average(10)
Tip Candle range is visible in the tooltip by hovering over the plots of WIB and WTC characters Play with Indicator settings for the study purpose