outside day by size

this report looks at the percent between last session's high (or low) and today's open — this allows you to filter the results by outside days of different sizes. typically, smaller outside days will reverse back into last session's range, where larger ones will not. lets look at es futures ny session and see some examples:

as seen above, outside days with large gaps usually indicate continuation, so looking for pullbacks in the opposite direction can be potential entries while using other confluences for take profit areas. On the flip side, outside days with small gaps usually reverse back into the previous days range. look for potential entries on pullbacks opposite of the previous days range and find take profit targets inside the previous days range.

why outside days matter:

recognizing outside days is critical for anticipating market behavior. this report shows the probability of a market reversal or continuation, allowing you to adjust your strategies for potential reversal or continuation setups. when an outside day is identified at the market open, the report can guide expectations for the trading day, helping to decide whether to look for trades that capitalize on a reversal back into the previous day's range or continuation in the direction of the open.