Price Bar Sequencing

This indicator classifies each price bar into one of three types based on its relationship to the previous bar:

1 = Inside Bar (high < previous high, low > previous low)

Indicates consolidation, indecision, or compression

2 = Normal Bar (expands beyond previous bar)

Standard price movement, normal market activity

3 = Volume-Expanded Bar (Normal Bar with high volume)

Shows conviction, institutional activity, or significant moves

How It Works:
The indicator reads sequences of these bar types to identify patterns:

Key Patterns Detected:

3-2-1 Sequence: Expansion → Normal → Contraction (potential reversal)

1-1-3 Sequence: Consolidation → Breakout (directional move)

3-3-2 Sequence: Sustained expansion (trend continuation)

Visual Display:
Each bar shows its type (1, 2, or 3)

Background colors highlight when patterns form

Info table shows current sequence, strength, and pattern type

No arrows or trading signals - just the raw pattern data

The complexity is in the interpretation, not the display

This isn't mathematical magic - it's observing that markets naturally move in these patterns because:

Traders take profits (compression)

New money enters (expansion)

Uncertainty causes hesitation (inside bars)

Volume confirms significance

Use Cases:
Identify compression before expansions

Spot high-volume breakout bars

Understand market structure through bar sequencing

Filter noise to focus on significant price action

Combine with other analysis for confluence

Customization:
Adjust volume threshold for Type 3 bars

Toggle labels on/off

Configure pattern highlighting

Set custom alerts for specific sequences

Why It's Useful:
Price action analysis often focuses on individual bars or candlestick patterns. This indicator adds a sequential dimension, helping traders see how bars relate to each other over time. The volume boost for Type 3 bars helps distinguish between normal range expansion and significant moves with institutional participation.

Markets don't move randomly - they breathe:
Compress → Expand → Compress → Expand
This tool visualizes that breathing cycle.

Most indicators try to predict: Price will go up/down.
This tool describes: "Price is currently in a compression phase after expansion" or "Price is expanding on high volume."

The tool doesn't provide trading signals but gives you a structured way to read and interpret price action sequences, which can be particularly helpful for understanding market structure, identifying potential turning points, and recognizing when price is likely to accelerate or consolidate.