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 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 are double exponential moving averages applied in technical analysis?

    Double exponential moving averages (DEMAS) are commonly used in technical analysis like any other moving average indicator ... Read Full Answer >>
  5. What are the alert zones in a Fibonacci retracement?

    The most commonly used Fibonacci retracement alert levels are at 38.2% and 61.8%. A 50% retracement level is also commonly ... Read Full Answer >>
  6. How was the Fibonacci retracement developed for use in finance?

    The use of Fibonacci retracements in stock trading was popularized by noted technical analysts W.D. Gann and R.N. Elliott. ... Read Full Answer >>

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