An inside day refers to a two-period pattern that suggests a
potential reversal or deceleration of the current trend. It occurs when the
current period's high is less than or equal to the high for the previous period
and the current period's low is greater than or equal to the low of the previous
period. In other words, it's where the range of the latest period is entirely
nestled within the range of the previous period. Also, it's important to note
that if any of the following periods are still within this range MetaStock
identifies the inside day as still existing.
When interpreting the inside day it isn't really considered
bullish or bearish; rather it foreshadows a significant move or breakout.
Remember however, it can provide many false signals unless used in conjunction
with other conditional statements. For example:
Mov(C,21,S) > Mov(C,35,S)
This formula specifies that a stock must exhibit an inside
day and that the 21 period simple moving average must be greater than the 35
period simple moving average. Since an inside day foreshadows a potentially
explosive move, this code isolates these occurrences wherever they exist in an
uptrend. Effectively, we've set up our gate, and the inside day is the trigger.
article is a snippet from the
MetaStock Programming Study Guide...
The Simple Secret to Make Metastock Easy & Identify Profitable
copyright 2007 www.meta-formula.com