What Are Inside Days?
Inside days refer to a candlestick pattern that forms after security has experienced daily price ranges within the previous day's high-low range. That is, the price of the security has traded "inside" the upper and lower bounds of the previous trading session. It may also be known as "inside bars." Inside days may indicate consolidation or lower price volatility.
Inside days can be indicative of indecision in the market for security, showing little price movement relative to the previous trading days.
Trading with technical tools like candlesticks is a highly specialized practice and therefore, must be done carefully. Spotting inside days is of interest to a trader because he may believe that the subject security is setting up for some sort of move up or down.
As you see in the chart after Flash crashes in Bitcoin it is quite common to have inside bars!
I believe in consolidation patterns (sideways) I would be better not to trade! because in this situation market becomes efficient and predicting prices movements become harder!
Reference Article:
https://www.investopedia.com/terms/i/inside-days.asp
Inside days refer to a candlestick pattern that forms after security has experienced daily price ranges within the previous day's high-low range. That is, the price of the security has traded "inside" the upper and lower bounds of the previous trading session. It may also be known as "inside bars." Inside days may indicate consolidation or lower price volatility.
Inside days can be indicative of indecision in the market for security, showing little price movement relative to the previous trading days.
Trading with technical tools like candlesticks is a highly specialized practice and therefore, must be done carefully. Spotting inside days is of interest to a trader because he may believe that the subject security is setting up for some sort of move up or down.
As you see in the chart after Flash crashes in Bitcoin it is quite common to have inside bars!
I believe in consolidation patterns (sideways) I would be better not to trade! because in this situation market becomes efficient and predicting prices movements become harder!
Reference Article:
https://www.investopedia.com/terms/i/inside-days.asp