Outside Days

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DEFINITION of 'Outside Days'

A term employed by market technicians and day traders. Outside days are days where the chart bar is both higher and lower than that of the previous day. Outside days therefore mark greater volatility in the stock price for that day.

INVESTOPEDIA EXPLAINS 'Outside Days'

Outside days apply to candlestick stock charts. When the bar is both higher and lower than the previous day's bar, it falls outside the trading range of the previous day. This may indicate a change in the general direction of the stock price.

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RELATED FAQS
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    Trade entries based on outside days can be very effective because they offer a strictly defined limited risk and high profit ... Read Full Answer >>
  2. How do I build a profitable strategy when using Outside Days?

    A potentially highly profitable trading strategy can be constructed with outside days that occur at major support or resistance ... Read Full Answer >>
  3. How are Outside Days interpreted by analysts and traders?

    Outside days are commonly interpreted by traders and market analysts as strong trend signals, especially when they occur ... Read Full Answer >>
  4. How do day traders capture profits from the difference between bid and ask prices?

    Day traders capture profits from the difference between bid and ask prices by scalping stock. Sensing that a stock is going ... Read Full Answer >>
  5. What types of data are necessary to make a technical analysis?

    Virtually all technical analysis is designed to be done with data inputs of price and time. One other data input important ... Read Full Answer >>
  6. How do I build a profitable strategy when spotting a Tweezer pattern?

    The key to building a profitable trade strategy based on a tweezer pattern is establishing sufficient confirmation of the ... Read Full Answer >>
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