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.
Interested traders can request the stock fetcher code for scanning inside days by emailing support@marketgeeks.com.
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.
P.S. Are Your Investments Safe?
If you follow these morning videos regularly, then you know I’ve been warning of a downturn in tech stocks for a while now.
After a heck of a year for high flyers like NVDA and META, and as the AI craze begins to fizzle out, the tech rally is over.
Hedge funds — the smart money — are now moving into so-called safe-haven stocks at the fastest pace in decades…
Are your investments safe?
Don’t wait until it’s too late to find out!
