The Outside day is when the present candle completely encompasses the previous candle. It must have a higher high and a lower low than the previous day.Inside day is when the present candle is completely encompassed by the previous candle. It must have a lower high and a higher low than the previous day.
Outside and Inside Day Patterns are reversal patterns which have worked well on Nifty's weekly chart.The tiny blue horizontal lines indicate Outside days and the red one is an Inside Day.Observe how the previous trend has reversed each time.
The week gone by has once again formed an Outside day pattern.Break below the low of the pattern which is 5869 will therefore spell trouble for the bulls.
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