Inside Day

AAA

DEFINITION of 'Inside Day'

A candlestick formation that occurs when the entire daily price range for a given security falls within the price range of the previous day. Inside day often refers to all versions of the harami pattern and can be very useful for spotting changes in the direction of a trend.

INVESTOPEDIA EXPLAINS 'Inside Day'

An inside day is often used to signal indecision because neither the bulls nor the bears are able to send the price beyond the range of the previous day. If an inside day is found at the end of a prolonged downtrend and is located near a level of support, it can be used to signal a bullish shift in trend. Conversely, an inside day found near the end of a prolonged uptrend may suggest that the rally is getting exhausted and is likely to reverse.

RELATED TERMS
  1. Candlestick

    A chart that displays the high, low, opening and closing prices ...
  2. Bearish Harami

    A trend indicated by a large candlestick followed by a much smaller ...
  3. Harami Cross

    A trend indicated by a large candlestick followed by a doji that ...
  4. Bullish Harami

    A candlestick chart pattern in which a large candlestick is followed ...
  5. Exhaustion

    Situation in which a majority of participants trading in the ...
  6. Forex Spread Betting

    A category of spread betting that involves taking a bet on the ...
Related Articles
  1. The Basic Language Of Candlestick Charting
    Charts & Patterns

    The Basic Language Of Candlestick Charting

  2. Inside Day Bollinger Band® Turn ...
    Forex Education

    Inside Day Bollinger Band® Turn ...

  3. Candlesticks And Oscillators For Successful ...
    Active Trading

    Candlesticks And Oscillators For Successful ...

  4. The ADX Shows Strong Uptrends In These ...
    Chart Advisor

    The ADX Shows Strong Uptrends In These ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center