Outside Reversal

Outside Reversal

In technical analysis, a situation in which a security's high is higher than the high of the previous trading day, and, likewise, the low is lower than the previous low. If an outside reversal occurs at a security's support level, this is a bullish indicator; if it happens at the security's resistance level, this is a bearish indicator.
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Outside reversal days (where the high and low of the current day's range are both wider than the previous day's range) are considered more potent.