Inside Day Analysis

K

koms

Hello Friends,

I am surprised not find any discussion regarding Inside Day analysis on ET.
Can somebody point me to some previously discussed threads on this issue?

The only good link I found on google search is
http://www.mrci.com/lwilliams.asp

My Observation:
The day after inside day look for Break out signals.

I think this can be used to day trade any index as a breakout strategy
Feel free to share some sharable thoughts.

Koms
 
Your observation is "correct". Keep in mind that inside-days are likely to be followed by outside-days because of the inside-day's narrow range.
 
Quote from koms:

Hello Friends,

I am surprised not find any discussion regarding Inside Day analysis on ET.
Can somebody point me to some previously discussed threads on this issue?

The only good link I found on google search is
http://www.mrci.com/lwilliams.asp

My Observation:
The day after inside day look for Break out signals.

I think this can be used to day trade any index as a breakout strategy
Feel free to share some sharable thoughts.

Koms
More...

Hi Koms,

The Inside Day pattern can be bullish or bearish and the day following it will be the confirmation of which (bullish or bearish).

It has been talked often here at EliteTrader.com via as a Japanese Candlestick patterns called Harami and the Homing Pigeon.

It's a high reliable pattern and that reliablility is dependent upon how you trade the confirmation (entry) signal.

The thing I like about Inside Day (Harami) because it can setup many other trade signals in the intervals that soon follow...trade signals with more follow-through to profit targets in comparison to the Inside Day or Harami.

However, the Inside Day (Homing Pigeon) doesn't setup other nice pattern signals in comparison to the Harami.

I like it when the Inside Day (Homing Pigeon) gets engulfed (outside day).

Simply, the Inside Day (Homing Pigeon) pattern needs more confirmation than the Inside Day (Harami) pattern.

Thus, the Inside Day pattern itself is very useful to Index Futures trading because it often sets up other good trade signals.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term
 
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