There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Sunday, February 5, 2012

Inside and Outside Days


When price trades within yesterdays range it is an inside day. It shows nothing has changed since yesterday and market is likely to trade within the band..Previous days price band acts as a big range. So trade this as you trade a range. Selling the highs and buying the lows.

If the market is trading above PDH or below PDL it is an outside day. If it is above PDH bias is bullish and below PDL bias is bearish.An outside day shows us that something has changed since yesterday.

Inside the range, buy at support when price falls, and sell at resistance when price rises.

If price trades above the PDH the buyers are clearly in control and buy pullbacks
If price breaks below the PDL  the sellers are control and sell retracements.

1 comment:

  1. Thanks ST. I have read this many times but forgot to thank you for it. Very nice post as usual.


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