Inside Day


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.


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.

  1. Exhaustion

    Situation in which a majority of participants trading in the ...
  2. Candlestick

    A chart that displays the high, low, opening and closing prices ...
  3. Harami Cross

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

    A trend indicated by a large candlestick followed by a much smaller ...
  5. Bullish Harami

    A candlestick chart pattern in which a large candlestick is followed ...
  6. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, ...
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