when you hear inside or outside they just refer to specific areas within a structure. Typically an inside area is a peak with data surrounding both sides, an outside area is a peak with one or both sides open. Using AGO as an example the August 2013 decline is the first corrective leg of the price action we're seeing now. That area became inside data once the high of 108.5 was covered. Personally I prefer to use fib ratios on that specific decline, others use different percentages. The 38.2 of that inside area gives us a value of 88, which is where my 88 level comes from. It's a very common occurrence.
The double top from Nov/Dec has the same thing going on, which means AGO has two opposing structures with similar characteristics. The 161.8 of that structure gives a level at 98.5, this back test that we're currently seeing of that level is also a common occurrence. The inside area of the current active double top is the retrace from 28/11 - 9/12.
Inside/outside trendlines are a must to know how to draw and applying a similar to say Elliott as a rough comparison you would be looking at the first versus fourth peaks.
Cheers
AGO Price at posting:
97.0¢ Sentiment: None Disclosure: Not Held
