This indicator identifies Inside Bar. Inside Bar is an indecisive setup where traders are not sure of the direction which is reflected in the bar range which is usually narrower. The day following Inside Bar usually would be a decisive bar with wide range. This decisive bar can be exploited if traded with discipline. The steps to follow are :
At EOD : 1) Use daily charts for locating Inside Bar with this indicator on. 2) Ensure you keep the parameter prev range Vs inside bar as 0.25 irrespective of default value. This means that the previous bar range is greater than the inside bar range by 25%. 3) Try going through all FNO scrips to locate inside bar (as there is no scanner in Trading View). 4) Once an Inside Bar scrip is located, earmark them or send them to watchlist. 5) Now you will have a watchlist with around 5-6 scrips.
Next trading day at market opening: 5) When the market opens, wait till 9.45 am (first half an hour). 6) Mark the first half an hour high and low. These are opening range high and opening range low. 7) If price breaks out decisively on the upside above opening range high, buy with a stop of opening range low. Target can be based on super trend or ema or any other method. If price breaks out decisively on the downside below opening range low, short with a stop of opening range high. 8) Ensure you follow disciplined position sizing.