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.
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INVESTOPEDIA EXPLAINS 'Inside Day' An inside
Exhaustion Trade
Posted by mikesm on 20th of Nov 2014 at 03:56 pm
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.