After converting this indicator MT5 and observing it on a chart, I noticed the following:
- Entries look most reliable at previous bar close (completed bar).
- Stoplosses look most reliable at a later bar close (completed bar).
- Takeprofits look most reliable at current price (bid/ask).
- A 1:1 risk:reward looks good. It's statistically 50/50 but these inside bars seem to indicate a directional edge.
I should note that this all anecdotal--I haven't forward tested the indicator or run stats on it. Also, the risk is technically slightly higher than the reward due to the different prices used for entries versus exits in the above strategy.
The opposite inside bar entry line must be used as stoploss levels in order to maintain the risk:reward ratio. All Red line sections are takeprofits--the upper one for longs, and the lower one for shorts.
Anyway, version 5 (attached) automatically shows those takeprofit levels.
“[A]s we know, there are known knowns—there are things we know we know. We also know there are known unknowns—that is to say we know there are some things we do not know. But there are also unknown unknowns—the ones we don’t know we don’t know.”—Donald Rumsfeld, 2002