Outside Days

Outside days are days where a security’s price is more volatile than the previous day as evidenced by a higher high and a lower low. This makes it a two-day price pattern. The difference between the open and close on the second day is larger than the first day, where the open and close of the second day are outside the range of the first day. The term is commonly used among market technicians and swing traders who look at short-term price patterns which play out over several days or weeks.