Here is an indicator that shows Double Inside Bar setup on the Daily. There will also be a scanner included just in case you want to setup a scanner to quickly look for stocks with double inside bar on the daily timeframe.
All credit goes to Drew Griffith for creating the indicator as well as the scanner for ThinkorSwim.
All credit goes to Drew Griffith for creating the indicator as well as the scanner for ThinkorSwim.
thinkScript Code
Rich (BB code):
#hint: double inside day - next day look for the price to move big one way or another...
def lo = low;
def hi = high;
def vo = volume;
def s = if (hi[2] >= hi[1] and lo[2] <= lo[1]) and (hi[1] >= hi[0] and lo[1] <= lo[0])
and vo[2] >= vo[1] and vo[1] >= vo then 1 else 0;
plot did = s;
did.SetPaintingStrategy(PaintingStrategy.BOOLEAN_ARROW_DOWN);
did.SetLineWeight(3);
did.AssignValueColor(Color.WHITE);
Scanner
Rich (BB code):
#DoubleInsideDay
#hint: SCAN (only) for "double inside day" - next day look for the price to move big one way or another...
def lo = low;
def hi = high;
def vo = volume;
def s = if (hi[2] >= hi[1] and lo[2] <= lo[1]) and (hi[1] >= hi[0] and lo[1] <= lo[0])
and vo[2] >= vo[1] and vo[1] >= vo then 1 else 0;
plot signal = s within 1 bars;
How to Trade the Double Inside Bar
Similar to the inside day bar, you go long (buy calls) on the breakout of the high of the inside bar and go short (buy puts) on the breakdown of the low of the inside bar.When you go long stop loss would be the low of the Inside Day bar.
When shorting, stop loss would be the high of the Inside Day bar.
Last edited: