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1 Chart Pattern Every Trader Needs to See

by | Sep 4, 2020

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. Why You Must Know If a Stock’s ‘On the Clock’ Before Buying!

Many traders dive into stock purchases without being clued in on their “profit dates.”

This often leaves them vulnerable and caught off-guard when the stock hits a downward spiral, seemingly out of the blue.

Ever found yourself in a pickle like this, holding a stock that seemed solid, only to watch its value plummet for no apparent reason?

Chances are, you’ve been caught up by this very phenomenon.

However, there’s a twist to this tale… By pinpointing these crucial profit dates, you can shift the odds in your favor…

And, with a bit of savvy and timing, you could turn the tables…

Keen to learn how to identify these pivotal profit dates in stocks? 

Get the Details HERE!  

 

WRITTEN BY<br>Roger Scott

WRITTEN BY
Roger Scott

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