Outside Day Trading
Outside days can occur frequently on daily charts. The secret of the outside day is the bigger the better and it has more meaning if found at the end of a trend.
Outside Day
An Outside Day or Outside Bar is a situation where the high low range of the bar is outside the range of the previous bar. See also: Inside Day
[MORE] ...
Outside day key reversal Key reversals are outside days either at trend highs or lows. A key reversal down occurs when a market makes a new high, then reverses down takes out the previous day's low, and closes lower than the previous day's close.
Outside Day: +DM or -DM depending upon which 'outside' range is greater. If both are same then ZERO
Upward gap: +DM is the range from yesterdays high to today's high
Downward gap: -DM is the range from yesterdays low to today's low ...
Outside Day
a trading day in which the current day's high and low are outside the previous day's price range. Directions of closing prices are considered very important.
Out-Trades ...
Outside Day - market participants test one extreme of the prior candle, fail to follow through and then initiate a breakout in the opposite direction. Thus, extention occurs beyond both the High and Low of the previous candle.
An outside day often occurs on important news, creating a larger range of prices, and may very well change the trend.
Reversal - Outside Day: A two-period chart pattern that suggests a potential reversal or deceleration of the current trend. The relationship of the two periods has the follow characteristics: ...
Outside Bar (Outside Day): A stock that has traded both above and below yesterday's range. It is identified by today's price being higher than yesterday's high and today's low being lower than yesterday's low.
The last engulfing top is a two line candlestick pattern that enthusiasts would recognize as an outside day if you ignore the shadows.
Also supportive of the bearish case, we have the bearish outside day on March 1 that still holds. That was driven by Bernanke's messaging as he spoke to Congress on Feb. 29 and March 1. That message was clearly less QE3 risk. That's dollar positive.
If there is an outside day (where both calculations are positive) then the larger of the two results is taken. An inside day (where both calculations are negative) will always equal zero.
Calculate the true range for the day.
The market may present us with inside days, outside days, reversal days, key reversal days, high volume days, low volume days, expanding ranges, contracting ranges, acceleration, and deceleration.
The close of the 2nd bar is near the bottom of the trading range and lower than the previous close. This pattern is known as an outside day and can also be referred to in candlestick parlance as a bearish engulfing pattern.
It merely infers that the security has fallen too far too fast and may be due for a reaction rally.
Outside Day: The high is above the previous day's high and the low is below the previous day's low.
 See also: Trading, Market, Close, Trend, Chart
  
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