Define an inside day and outside day

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a. Define an inside day, outside day, narrow-range day, and wide-range day. Which of these days represents increasing volatility, and which represents contracting volatility? Explain your answer.

b. Schwager (1996) states that the one-day reversal pattern "successfully call(s) 100 out of every ten highs." What does he mean by this statement, and what is the implication for traders using these reversal patterns?

Reference no: EM131233472

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