Bar Direction Solver

The Bar Direction solver gives a favorable output value when the bar has closed up when evaluating the Long side and closed down when evaluating the Short side. Bars must be at least as large as the Minimum Bar Size in range before being counted.
Parameters
Each bar’s opening price to closing price range must be equal or greater than this value to generate an output other than 0.
Measurement
Sets the type of measurement to calculate the Minimum Bar Size. Possible measurements are Points, Ticks, Renko Bricks, & ATRs.
Selects the output behavior. Percent is typically used for fuzzy logic based system. Where ‘All or Nothing’ is most commonly used. All or Nothing is better suited for true or false systems (non fuzzy logic).
Percent
Outputs a percentage value based on the number of bars that satisfies the condition in the required direction. I.E. If the Number Bars value is 4, each bar meeting the Minimum Bar Size will increment the output value by 1/4 or 25%(0.25). The 4th bar will output a value of 1 (100%).
All or Nothing
Outputs a logical value of 1 when the bars in Number of Bars satisfies the condition of all being in the same direction. Until the Number of Bars are all in the same direction, this setting will output a value of 0.
The number of bars back to start analyzing this test condition.
Video Tutorial
Examples
Example 1: The Basics
This demonstrates the basic function of the Bar Direction solver by outputting a value in the direction of the bar.
- Add the Bar Direction Solver, and use the default setting
As is seen in the chart, an output of 1 indicates price moved higher, and an output of -1 indicates price moved lower.
Example 2: Strength On Volume
In this example we want to detect strong price movement with a certain maximum amount of volume or less. Normally traders are looking for strong price moves with high volume to note conviction behind the move. However, this example is looking for a strong price move with a fixed amount of volume, which could denote lack of conviction or a “fake-out”. The chart uses a Volume bar which limits the volume per bar, so only the price movement needs to be analyzed. The price movement wanted is a least 5 ticks per bar for 3 bars in a row.
- Add the Bar Direction Solver
- Set the Minimum Bar Size to 5 Ticks
- Set Mode to “All or Nothing”
- Set Number Bars to 3
As can be seen in this example, a “fake-out” did not occur, but price did rest a while after those detected moves before continuing.
Applying to Another Timeframe
Now let’s apply the same test to a 200 Tick chart that we started out with in example 1.
- Change the charts Data Series to 200 Tick
- Open the BH template from the Indicator panel
- Click the Chart button to add a secondary data series
- change the 1 Min chart to a 1500 Volume chart
- Add a Bar Direction Solver after the 1500 Volume chart
- Set the Minimum Bar Size to 5 Ticks
- Set Mode to “All or Nothing”
- Set Number Bars to 3