QQQ made both a lower low and a higher high on Friday versus the day before. That is often referred to as an “outside day”. Outside days are not terribly unusual. What is unusual is that it happened for the 2nd day in a row. In the past I have shown that double outside day patterns like this have frequently been followed by short-term rallies. I last discussed this in the 11/14/13 blog. Below is an updated results table.
Results here appear quite positive. Using the 1-day exit criteria, I generated the profit curve below.
The strong, persistent upslope here is impressive.
It’s also worth noting that this pattern has also been bullish for SPY.
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