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
  1. How effective is creating trade entries when using Outside Days?

    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 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 >>
  3. 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 >>
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