Inside Day Trading Guide

Master the art of trading inside day patterns with Six7 Alpha's automated scanning and analysis tools

What is an Inside Day Pattern?

An Inside Day occurs when a stock's daily price range (High to Low) is completely contained within the previous day's price range. This powerful pattern signals market consolidation and often precedes significant price movements.

Visual Pattern Example

Day 1 (Mother Bar)

$50

$45

High: $50
Low: $45

Day 2 (Inside Bar)

$48

$46

High: $48
Low: $46

Inside Day Pattern: Day 2's range ($46-$48) is completely contained within Day 1's range ($45-$50)

What It Signifies

Consolidation: Price action is compressing
Volatility Contraction: Range is narrowing
Decision Point: Market preparing for move
Breakout Setup: High probability of directional move

Why It Works

Buyers and sellers in equilibrium
Energy building for breakout
Clear risk levels defined
High reward-to-risk ratios

Crypto & Multi-Timeframe Support

Cryptocurrency Markets

Six7 Alpha now supports inside day pattern detection for major cryptocurrencies, expanding your trading opportunities beyond traditional stocks.

Major Crypto Pairs: BTC-USD, ETH-USD, BNB-USD, SOL-USD, and more

24/7 Market Coverage: Patterns detected around the clock

UTC Standard: Daily candles reset at 00:00 UTC (industry standard)

Optimal Timing: Scans run 5 minutes after UTC midnight for fresh data

Multi-Timeframe Analysis

Go beyond daily patterns with our multi-timeframe scanner that detects inside day patterns across different time intervals for more trading opportunities.

1D (Daily): Traditional daily inside day patterns

4H (4-Hour): Intraday patterns for day trading

1W (Weekly): Longer-term patterns for swing trading

Real-time Detection: Live pattern scanning without database delays

Benefits of Multi-Timeframe Trading

More Opportunities

Find patterns across multiple timeframes instead of waiting for daily patterns only

Better Timing

4H patterns provide more frequent entry signals for active traders

Market Versatility

Trade crypto 24/7 and stocks during market hours with unified analysis

Pro Tip: Combine daily and 4H patterns for confluence - when both timeframes show inside patterns, the probability of successful breakout increases significantly.

Pattern Quality Scoring System

Our advanced scoring system ranks crypto patterns by quality across multiple timeframes, helping you identify the best trading opportunities.

How Scoring Works:

Cryptocurrency Scoring

Weekly Patterns: 5 points (most valuable)

Daily Patterns: 3 points

4-Hour Patterns: 2 points

Volatility Bonus: +1 point

Volume Bonus: +1 point

Stock Scoring

Weekly Patterns: 4 points (valuable)

Daily Patterns: 2 points

4-Hour Patterns: 1 point

Market Hours Bonus: +1 point

Sector Momentum Bonus: +1 point

Relative Volume Bonus: +1 point

Earnings Safety Bonus: +1 point

Example Scoring:

Bitcoin (BTC-USD) - Score: 13.2

Weekly pattern: 5 points
Daily pattern: 3 points
4-Hour pattern: 2 points
Volatility bonus: +1 point
Volume bonus: +1 point
Total: 12 points + algorithmic adjustments

AAPL (Stock) - Score: 7.0

Weekly pattern: 4 points
Market hours bonus: +1 point
Sector momentum bonus: +1 point
Relative volume bonus: +1 point
Total: 7 points (high-quality stock pattern)

Trading Insight: Crypto scores (max 13+) and stock scores (max 8+) use different scales. Patterns with scores above 10 (crypto) or 7 (stocks) indicate multi-timeframe confluence, significantly increasing the probability of successful breakouts.

How to Leverage Stock Scoring

High-Quality Stock Patterns (Score 6-8)

Maximum Bonuses: All stock bonuses applied
Market Context: Optimal trading conditions
Sector Support: Sector momentum positive
Volume Confirmation: Above-average relative volume
Earnings Safety: No upcoming earnings risk

Trading Strategies by Score

Score 7-8: Aggressive entry, larger position
Score 6: Standard entry, normal position
Score 4-5: Conservative entry, smaller position
Score 2-3: Watch only, wait for confirmation
Below 2: Avoid, low probability setup

Stock Pattern Selection Framework

Priority 1: Score 7-8

Multi-timeframe confluence with all bonuses. Enter on breakout with tight stops.

Priority 2: Score 6

Solid setup with most bonuses. Standard position sizing and risk management.

Priority 3: Score 4-5

Basic pattern with some bonuses. Smaller positions, wider stops required.

Stock vs Crypto Scoring Comparison

Aspect	Stock Patterns	Crypto Patterns
Max Score	8 points	13+ points
High Quality	Score 7-8	Score 12+
Trading Hours	9:30 AM - 4:00 PM ET	24/7
Key Bonuses	Sector, Volume, Earnings	Volatility, Volume
Best Timeframes	Daily, Weekly	4H, Daily, Weekly

How to Identify Inside Day Patterns

Identification Criteria

Day 2 High must be lower than Day 1 High

Day 2 Low must be higher than Day 1 Low

Complete price range containment

Automated Scanning with Six7 Alpha

Our system automatically scans 500+ stocks daily and identifies inside day patterns for you:

Daily at 4:30 AM ET

When pre-market opens

500+ Stocks Scanned

From Finviz screener

Real-time Status

Live price tracking

Trading Strategy

The strategy focuses on trading the breakout from the Inside Day range. Patience is key - wait for the breakout confirmation before entering.

Long Entry Signal

Trigger: Price breaks above Mother Bar High (Day 1 High)

Confirmation: Candle closes above breakout level

Volume: Above-average volume confirms strength

Short Entry Signal

Trigger: Price breaks below Mother Bar Low (Day 1 Low)

Confirmation: Candle closes below breakdown level

Volume: High volume increases breakdown probability

Undercut and Rally

Trigger: Price breaks below Mother Bar Low, then recovers above it

Confirmation: Price closes back above the low after undercutting

Entry: Go long when price confirms recovery above the low

Signal Strength: Very bullish - shows strong buying interest

Risk Management

Stop Loss Placement

Conservative Approach

Longs: Stop below Inside Bar Low
Shorts: Stop above Inside Bar High
Lower risk, smaller position size

Aggressive Approach

Longs: Stop below Mother Bar Low
Shorts: Stop above Mother Bar High
Higher risk, larger position size

Profit Targets

Minimum: 1:2 Risk/Reward Ratio

Primary: Next major support/resistance level

Secondary: Fibonacci extension levels

Advanced: Previous swing highs/lows

Understanding Pattern Status

Six7 Alpha provides real-time status updates for each pattern to help you make informed trading decisions.

Inside

Price is trading between prior day high and low

Action: Wait for breakout - pattern still forming

Breakout

Price has broken above prior day high

Action: Consider long entry if confirmed

Undercut

Price has broken below prior day low

Action: Consider short entry if confirmed

Undercut and Rally

Dropped below low, then recovered above

Action: Strong bullish signal - consider long

Best Practices & Pro Tips

High Probability Setups

Look for inside days after strong trends

Multiple consecutive inside days increase probability

Volume drying up during consolidation

Breakout with expanding volume

Avoid These Traps

Fake breakouts on low volume

Inside days in choppy, sideways markets

Breakouts during news events

Ignoring overall market direction

Important Warnings

Inside day patterns are not guaranteed - always use stop losses
Market context matters - trade in direction of overall trend
Never risk more than 1-2% of your account on a single trade
Practice with paper trading before using real money
Keep detailed trading journal to track performance

Twitter Sentiment Integration

The Inside Day Chart now displays Twitter stock recommendations alongside pattern data, helping you identify stocks with both technical patterns and social sentiment confirmation.

Understanding Twitter Badges

Each pattern row shows a Twitter badge with format "X rec · Y↑/Z↓" indicating total recommendations and sentiment breakdown from the last 30 days.

Green Badge: Bullish sentiment dominates
Red Badge: Bearish sentiment dominates
Gray Badge: Neutral or balanced sentiment

Combining Patterns + Twitter

Use Twitter sentiment to enhance your pattern trading decisions:

Bullish Pattern + Bullish Twitter: Highest conviction long setups
Bullish Pattern + Bearish Twitter: Caution - consider smaller size
Multiple Recommendations: Higher social interest = stronger moves

Trading Examples

Ideal Long Setup

Inside Day pattern + "8 rec · 6↑/1↓" Twitter badge = Strong bullish confirmation. Consider larger position size with tight stop below pattern low.

Caution Setup

Inside Day pattern + "3 rec · 1↑/2↓" Twitter badge = Social skepticism. Consider smaller size or wait for additional confirmation.

Using Six7 Alpha Tools

Web Dashboard

Visit /inside-day-chart for real-time pattern monitoring

Mobile Friendly

Monitor patterns on any device with responsive design

API Access

Integrate with your own trading systems via REST API

Ready to Trade Inside Day Patterns?

Inside day patterns offer some of the highest probability setups in technical trading. With Six7 Alpha's automated scanning and real-time monitoring, you'll never miss a profitable opportunity.

Dashboard

Remember: No trading strategy guarantees profits. Always practice proper risk management.

Start with paper trading to build confidence before risking real capital.