Inside Day + Low
ATR

An inside day (entirely within prior day's range) combined with 20-day-low ATR signals double volatility compression. A coiled spring. Trade the break of the inside day in the direction of trend for outsized moves.

CompressionDaily2:1 R:RModerateAny
Inside Day
Required
20-day low
ATR Level
Deploy This Strategy See Rules

Rules & Configuration

The full rule set, required indicators, suggested configuration, execution flow, and performance parameters for the Inside Day + Low ATR setup.

An inside day (entirely within prior day's range) combined with 20-day-low ATR signals double volatility compression. A coiled spring. Trade the break of the inside day in the direction of trend for outsized moves.

Indicators Used
ATREMA 50
Rules
📈 Long Inside-Day Break
  • Inside day confirmed: today's high < yesterday's high, today's low > yesterday's low
  • Current ATR(14) at 20-day low (volatility compressed)
  • Price above EMA 50 (uptrend context)
  • Next day: break above inside day's high
  • Enter long on breakout
  • Stop: below inside day's low
  • Target: 2× inside day range, or prior swing high
Inside Day
Required
20-day low
ATR Level
💡 Pro Tip

The double compression (inside day + low ATR) often precedes news-driven moves or fundamental catalysts. Check the economic calendar before entering. Entering right before a major release can lead to a breakout that immediately reverses on the data.

Common questions

What is the Inside Day + Low ATR strategy?

An inside day (entirely within prior day's range) combined with 20-day-low ATR signals double volatility compression. A coiled spring. Trade the break of the inside day in the direction of trend for outsized moves.

What's the pro tip for trading Inside Day + Low ATR?

The double compression (inside day + low ATR) often precedes news-driven moves or fundamental catalysts. Check the economic calendar before entering. Entering right before a major release can lead to a breakout that immediately reverses on the data.

What indicators does the Inside Day + Low ATR strategy use?

The Inside Day + Low ATR strategy uses the following indicators: ATR, EMA 50. These can be configured directly in AlgoBars AlgoBuilder.

What timeframe works best for Inside Day + Low ATR?

The Inside Day + Low ATR strategy is best traded on the Daily timeframe. This can be adjusted based on your trading style and market conditions.

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