Inside Day

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Definition of 'Inside Day'

An inside day is a trading day in which the high and low prices of a security are within 1% of each other. This indicates that there was little price movement during the day, and that the market was relatively calm.

Inside days are often seen as a sign of consolidation, as the market is taking a breather after a period of volatility. They can also be seen as a sign of indecision, as traders are not sure which way the market is going to move.

Inside days are not always significant, and they can occur for a variety of reasons. However, they can sometimes be a precursor to a breakout, as the market is preparing to move in a new direction.

Here are some additional things to know about inside days:

* They are most common in trending markets, as the market consolidates after a period of strong price movement.
* They are less common in range-bound markets, as the market is not moving in a clear direction.
* Inside days can be used to identify support and resistance levels.
* They can also be used to identify potential trading opportunities.

Overall, inside days are a normal part of market activity. They can provide valuable information about the market, and they can be used to identify potential trading opportunities.

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