As you well know an Inside Bar (IB) is a bar with a High that is lower than the previous bar’s High and a Low that is higher than the previous bar’s Low. That said, the “Daily Inside Bar Setup” or DIBS Method is based on the assumption that an IB cannot exceed the bounds of the previous bar.
According to this definition, we can have:
- Upside breakout of an hourly inside bar if the breakout price is higher than the day’s open;
- Downside breakouts of an hourly inside bar if the breakout price is lower than the day’s open.
- File: DIBSv1.0.mq4
- Size: 4 Kb