Inside Day

The Inside Day Background indicator automatically highlights Inside Day candles directly on the chart using a customizable background color.

An Inside Day occurs when the current candle’s high is lower than the previous candle’s high, and the current low is higher than the previous candle’s low — signaling price consolidation and range compression.

This condition often precedes volatility expansion and breakout opportunities.

How It Works

The script scans each bar and checks the following condition:

Current High < Previous High

Current Low > Previous Low

When both are true:

The chart background is highlighted

No shapes or labels are plotted (clean chart visualization)

An alert condition is triggered (optional)

Trading Use Cases

Inside Days are commonly used for:

Breakout strategies

Range expansion setups

Volatility contraction signals

Bull Flag / consolidation continuation patterns

Opening range continuation plays

Traders often watch for a break above the Inside Day high (bullish) or below the low (bearish).

Features

Clean background highlight only (no chart clutter)

Fully customizable background color

Toggle on/off visibility

Built-in alert condition

Works on all timeframes

Overlay on price chart

Notes

Consecutive Inside Days will continue highlighting until range expansion occurs.

Best combined with volume, VWAP, or range breakout strategies.

Effective for both day trading and swing trading environments.