Outside bar breakout

An outside bar trades above the previous high and below the previous low in the same candle. Both sides were tested. The side that breaks next usually shows who won.

Breakout strategiesBeginnerConfirmed on candle close

Watch it play out

Replay plays a setup this strategy already finished and stops so you can call it. Live watches for the next one on Bitcoin (BTC-USD, 1-minute candles). Either way a setup is marked only when a candle closes, then it's locked and plays out to its target or its stop. Nothing to trade here.

How the live chart applies the rules
  • 1-minute candles. The chart runs every strategy on 1-minute Bitcoin candles from Coinbase, whatever timeframe the strategy page suggests. Times are New York time.
  • Closed candles only. Levels, triggers and stops are read when a candle closes. Entry is that candle's close.
  • One setup at a time. While a setup is playing out, the same strategy doesn't start another.
  • Sensible risk only. A setup counts only if its stop is between a quarter and 6 times the average candle range (ATR 14) from entry (wider for session-range strategies), and its target is at least 0.75R away.
  • How a setup ends. At its target or its stop. If one candle touches both, the stop counts. A setup also ends at any exit its page names, and after 120 candles (longer for trend and session strategies) if nothing is hit.
  • Replays. A replay plays the latest setup this strategy finished on the live chart's recent history, sped up. It's the same setup the live chart confirmed, with the same entry, stop and result. If the strategy hasn't finished one recently, the replay uses example candles and says so.
  • The trading day. A day runs 6:00 PM to 6:00 PM ET, like futures. VWAP restarts at 6:00 PM, and "yesterday" means the last full trading day.

How Outside bar breakout works

TargetStopThe range sets the battle linesClose outside the range
Example drawing, not live market data.
1Where's the level?
The high and low of the outside bar.
2What's the trigger?
Within the next 3 candles, a candle closes beyond the outside bar's high (long) or low (short).
3Where is it wrong?
The middle of the outside bar.
4Where does it end?
2 times the risk.
Markets
Futures, Stocks, Forex, Crypto
Timeframes
5m to 1d
Sessions
Any
Also called
Engulfing range bar, Outside day breakout

What it means

An outside bar trades above the previous high and below the previous low in the same candle. Both sides were tested. The side that breaks next usually shows who won.

How it is confirmed without repainting

The outside bar is fixed once it has closed. Its high and low never change afterwards.

When it fails

Price closes back inside the outside bar right after the break.

Education only. Prop Firm Duel does not provide trade signals or financial advice. This page explains how the strategy is commonly defined. Past results never guarantee future results.

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