MetaStock Inside Day Function

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.

SYNTAX Inside()

APPLICATION

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:

Inside() AND

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.

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