While I don’t always show it I do always look at the equity curve when evaluating studies to include in my analysis. Last night while conducting my research I came across a great example of why this is important.
Inside days have generally suggested a bearish edge when the market is below the 200ma and no edge much better than upside drift when above the 200ma. I found it unusual that the inside day came with an unfilled gap down so I tested the possible effects under these circumstances.
Base on this the next 1-3 days would seem to have a bearish inclination. But here is a picture of the equity curve.