Learn how to spot the coveted “M spike” in your charts and more — LIVE at 11 a.m. ET on March 8!
The “inside day pattern” is one of my favorite chart patterns that every trader needs to see.
This pattern involves looking for a stock that has made a 50-day high and then seeing two subsequent days where highs are lower and lows are higher, indicating that the days are inside each other.
Inside days show a narrowing of the range and lower volatility levels, making it a good sign of relative strength and potential breakouts.
Trading inside days allows for low-risk entries and the ability to ride the trend momentum.
Highlights
- The inside day pattern occurs when a stock’s highs get lower and lows get higher after making a 50-day high.
- This pattern resembles a mini triangle and signifies price congestion and consolidation.
- Inside days lower volatility levels, reducing risk and making it an effective strategy for buying breakouts in the direction of the trend.
- Stop orders can be used to enter and exit trades, maintaining low risk while riding uptrend momentum.
- Inside days are currently observed in stocks like Alibaba, Twitter, and the semiconductor index (SMH). The VXX and UVXY are potential options for short positions.
Stock Fetcher code:
high 3 days ago reached a new 50 day high
and high 1 day ago below high 2 days ago
and low 1 day ago above low 2 days ago
and high below high 1 days ago
and low above low 1 days ago
and chart-type is ohlc
show stocks where Average Volume(90) is above 300000
Price is between $20 and $1000
Join me in the LIVE room to see how you can spot what I call the “M spikes” in your charts…
And details on how to spot a stock that could be primed to make a big move!
