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Outside Bar
This study will color bars that have an Outside Bar pattern. An Outside Bar is a bar that has a higher High and a lower Low than those of the previous bar.
Let \(H\) and \(L\) be random variables denoting the High and Low prices, respectively, and let \(H_t\) and \(L_t\) be their respective values at Index \(t\). Then we denote the Outside Bar at Index \(t\) as \(OB_t\), and we compute it for \(t \geq 0\). The method of computation varies slightly depending on the setting of the Include Equal High Low Input.
If Include Equal High Low is set to No, then we compute \(OB_t\) as follows.
\(\displaystyle{OB_t = \left\{\begin{matrix} H_t & H_t > H_{t - 1} \space and \space L_t < L_{t - 1} \\ 0 & H_t \leq H_{t - 1} \space or \space L_t \geq L_{t - 1} \end{matrix}\right .}\)If Include Equal High Low is set to Yes, then we compute \(OB_t\) as follows.
\(\displaystyle{OB_t = \left\{\begin{matrix} H_t & H_t \geq H_{t - 1} \space and \space L_t \leq L_{t - 1} \\ 0 & H_t < H_{t - 1} \space or \space L_t > L_{t - 1} \end{matrix}\right .}\)In either case the Outside Bars are the bars for which \(OB_t = H_t\).
The spreadsheet below contains the formulas for this study in Spreadsheet format. Save this Spreadsheet to the Data Files Folder. Open it through File >> Open Spreadsheet. Inputs
Spreadsheet
*Last modified Wednesday, 28th September, 2022.