Outside Day

Tuesday’s session looked above the prior day’s high and failed, trading back into and below the previous range and closing as an outside day.

Price reentered the prior multi-day trading range, making Monday’s rally a failed breakout of balance.

outside-day

Focusing on the single print at Tuesday’s close, acceptance below that level could target Tuesday’s low and potentially the poor structure from the 2/3 profile, putting price back into the prior trading range.

When price finds acceptance back into a prior balance the potential exists to eventually trade back to the opposite end of that range.

Acceptance above the prior close probably targets at least some of the anomalies in the market profile chart from Tuesday.

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