It’s one of my favorite patterns…
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1 Chart Pattern Every Trader Needs to See
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. 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.
_________________________________________________ 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? _________________________________________________ *This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. >>>Join the Conversation<<< Give us a follow on your social media platform of choice, and make your voice heard! |
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