Inside Day Candlestick Pattern: The Pair at Tesla's April 2025 Tariff Low and Salesforce's December 2025 Top

Anish DasUpdated Nov 8, 202611 min readbeginner

Inside dayLesson 24 of 44 · Two candlesOpposite: Outside day

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  • Two candles

On April 8, 2025, the day the S&P 500 lost an early 4.1% gain and closed at its lowest level in almost a year, Tesla traded entirely inside the previous day's range. Bought at that close with a stop under the first day's low, the trade risked 3.4%. The next afternoon President Trump paused most of his new tariffs for 90 days. Tesla closed 22.7% higher that day, and by September 30, 2025 it was up 100.5%.

On December 30, 2025, at a prior high after a 21.2% rally, Salesforce did the same. Sold at that close with a stop above the first day's high, the trade risked 1.2%. By June 22, 2026 the stock was down 43.5%.

Same two bars, opposite moves. An inside day says the market paused inside the day before, and the first close out of that range says which way it breaks. Neither stock has traded through its stop since. Here is how to read an inside day, where the stop goes, and how to find the next one.

What the inside day did#

An inside day at a low is a buy for the bounce. One at a high is a sell signal for holders and an entry for short sellers.

TSLAApr 8, 2025

$10,000 became$20,045

Where
A 60-session low
The trade
Buy at the close
Entry
221.86
Stop
214.25, day 1's low (3.4% risk)
Next session
+22.7%
Ten sessions later
+13.0%
Best close within 60 sessions
+63.6% (May 27, 2025)
Best close within 120 sessions
+100.5% (Sep 30, 2025)
Reward for each $1 risked
$29.29
Stop hit since?
Never
CRMDec 30, 2025

$10,000 held through the fall$5,645

Where
A prior high
The trade
Sell or short at the close
Entry
265.92
Stop
269.11, day 1's high (1.2% risk)
Next session
−0.4%
Ten sessions later
−9.9%
Best close within 60 sessions
−33.0% (Feb 23, 2026)
Best close within 120 sessions
−43.5% (Jun 22, 2026)
Reward for each $1 risked
$36.30 on a short
Stop hit since?
Never

The $10,000 and reward rows use the 120-session numbers. Prices are split-adjusted, as on the chart.

The inside day in one table#

An inside day is two daily candles. Day 2's whole range, from its high to its low, fits inside day 1's range. Day 1 is often called the mother bar. Buyers could not take out day 1's high and sellers could not take out its low, so the stock paused.

Anatomy of an inside day: day 1, the mother bar, and day 2 inside it. Day 2's high is at or under day 1's high and its low at or over day 1's low. Day 2's range is smaller. The stop for a long goes just under day 1's low, and for a short just above day 1's high.

These are the rules the VCP Scanner terminal uses to name an inside day on a daily chart.

PartRule
Day 2's highAt or under day 1's high
Day 2's lowAt or over day 1's low
Day 2's rangeSmaller than day 1's, so an exact copy doesn't count
SizeNone: it is the one candle name without the half-ATR size rule
PositionNone: it counts after a decline, after a rally or in a range

The bodies and the colours do not matter. Tesla's first day was green and its second red. So were Salesforce's.

The inside day and its look-alikes#

Five two-bar patterns in the trend each forms in: an inside day, neutral; a bullish harami after a decline, bullish; a bearish harami after a rally, bearish; a bullish harami cross after a decline, bullish; and an outside day, whose second range covers the first, neutral.
PatternWhat fits insideForms afterReads as
Inside dayDay 2's whole rangeAnywhereNeutral
Bullish haramiDay 2's body, inside a long red bodyA 5-session lowBullish
Bearish haramiDay 2's body, inside a long green bodyA 5-session highBearish
Harami crossA doji, inside a long bodyA 5-session low or highBullish or bearish
Outside dayNothing: day 2's range covers day 1'sAnywhereNeutral

A bullish harami or a bearish harami looks only at the bodies, so its shadows may poke out. An inside day looks only at the range. Many haramis are inside days too, and then the terminal names the harami first. The same goes for a bullish harami cross and for tweezers. Tesla's and Salesforce's inside days had no other name.

Example 1: Tesla (TSLA) at its 2025 tariff low, Apr 8, 2025#

TSLA daily chart in the VCP Scanner terminal. Day 1 of the inside day, Apr 7, 2025, swung from 214.25 to 252.00. Day 2, Apr 8, stayed inside that range, from 217.80 to 250.44, and closed at 221.86. Day 1's low is the stop, a 3.4% risk from the close. The next session Tesla closed at 272.20, above day 1's high, and it rose past 360 by late May. With Only at a key level off, the chart also marks other candles. The blue arrow was drawn with the terminal's Arrow Marker.
TSLA daily chart in the VCP Scanner terminal. Day 1 of the inside day, Apr 7, 2025, swung from 214.25 to 252.00. Day 2, Apr 8, stayed inside that range, from 217.80 to 250.44, and closed at 221.86. Day 1's low is the stop, a 3.4% risk from the close. The next session Tesla closed at 272.20, above day 1's high, and it rose past 360 by late May. With Only at a key level off, the chart also marks other candles. The blue arrow was drawn with the terminal's Arrow Marker.

Open TSLA in the VCP Scanner terminal →

FactTSLA, Apr 7 to Apr 8, 2025
Day 1 (Apr 7): open / high / low / close223.78 / 252.00 / 214.25 / 233.29, green
Day 2 (Apr 8): open / high / low / close245.00 / 250.44 / 217.80 / 221.86, red
Inside byDay 2's high 1.56 under day 1's, its low 3.55 above day 1's
Day 2's range32.64, 86% of day 1's 37.75
Low214.25, the lowest since Oct 23, 2024, 56.1% below the Dec 18, 2024 record high of 488.54; no key level
Stop214.25, day 1's low
Risk to stop3.4%
Volume1.55× the 50-day average
Stage4

Day 1 was the third session of the crash that followed the Apr 2 tariff announcement, and Tesla swung 37.75 from its low to its high. On Apr 8 the S&P 500 erased an early 4.1% gain and closed 1.6% lower, at its lowest close in almost a year, after the White House confirmed a 104% tariff on China. Tesla opened at 245.00, inside day 1's range, and slid to 221.86 without breaking day 1's low.

What followed:

  • Next session (Apr 9): Tesla opened at 224.69. That afternoon President Trump paused most of the new tariffs for 90 days, and the S&P 500 rose 9.5%, its best day since 2008. Tesla closed at 272.20, up 22.7%, its first close above day 1's high of 252.00.
  • Ten sessions later (Apr 23): 250.74, +13.0%.
  • May 27, 2025: 362.89, +63.6%.
  • Sep 30, 2025: 444.72, +100.5%. That is 29.3 times the 7.61 risked on each share.
  • The low of 214.25 was never broken. Tesla's lowest price since is 222.79, above day 2's own low as well. On Nov 6, 2026 it closed at 358.22, 61.5% above the inside day's close.

Two 5% gaps did about three-tenths of the climb to May 27: Apr 23, the morning after Tesla's first-quarter report, and May 12, after the US and China agreed to cut their tariffs. Over the whole climb to Sep 30 the 5% gaps netted out: three up, the third on Sep 15, and three down in July.

With $500 at risk, the stop sized the trade at 65 shares, about $14,421. At the Sep 30, 2025 close those shares were up $14,486.

Example 2: Salesforce (CRM) at its December 2025 top, Dec 30, 2025#

CRM daily chart in the VCP Scanner terminal. The inside day of Dec 29 to 30, 2025 traded above the Dec 11 high of 267.90 and closed back below it, at 265.92 on Dec 30. Day 1's high of 269.11 is the stop, a 1.2% risk from the close. Two sessions later Salesforce closed below day 1's low, and it fell under 180 by late February. The blue arrow was drawn with the terminal's Arrow Marker.
CRM daily chart in the VCP Scanner terminal. The inside day of Dec 29 to 30, 2025 traded above the Dec 11 high of 267.90 and closed back below it, at 265.92 on Dec 30. Day 1's high of 269.11 is the stop, a 1.2% risk from the close. Two sessions later Salesforce closed below day 1's low, and it fell under 180 by late February. The blue arrow was drawn with the terminal's Arrow Marker.

Open CRM in the VCP Scanner terminal →

FactCRM, Dec 29 to Dec 30, 2025
Day 1 (Dec 29): open / high / low / close264.71 / 269.11 / 264.71 / 266.23, green
Day 2 (Dec 30): open / high / low / close266.66 / 268.28 / 265.33 / 265.92, red
Inside byDay 2's high 0.83 under day 1's, its low 0.62 above day 1's
Day 2's range2.95, 67% of day 1's 4.40
LevelA prior high: the Dec 11, 2025 high of 267.90, traded above and closed back below
High269.11, the highest since Jul 29, 2025, 27.1% below the Dec 4, 2024 record of 369.00
Stop269.11, day 1's high
Risk to stop1.2%
Volume0.42× the 50-day average
Stage1

Salesforce had rallied 21.2% from its Nov 21 low of 221.96, helped by a Dec 3 report that raised its full-year outlook. The inside day came in the quiet week between Christmas and New Year: both days traded above the Dec 11 high, and neither held it.

What followed:

  • Next session (Dec 31): closed at 264.91, down 0.4%.
  • First close below day 1's low (Jan 2, 2026): 253.62, two sessions after the inside day.
  • Ten sessions later (Jan 14): 239.57, −9.9%, the day after a 7.1% drop, when a downgrade of Adobe spread through software stocks.
  • Feb 23, 2026: 178.16, −33.0%, as fears that AI tools would replace software subscriptions hit the whole sector.
  • Jun 22, 2026: 150.12, −43.5%, its 14th lower close in a row and a 52-week low. That is 36.3 times the 3.19 risked on each share.
  • The high of 269.11 was never broken. On Nov 6, 2026 Salesforce closed at 213.65, 19.7% below the inside day's close.

No 5% gap came in the first 60 sessions. One gap, on Apr 23, 2026, did about an eighth of the fall to June 22.

With $500 at risk, the stop sized a short at 156 shares, about $41,484. A tight stop makes a big position. At the Jun 22, 2026 close the short was up $18,065.

Where an inside day counts: key levels#

An inside day on a level is a pause at that level, from either side. In the terminal, the Only at a key level switch is on by default. For an inside day it keeps the ones at any of these:

LevelWhat it is
A prior lowA swing low that price undercuts and then closes back above
The 50-day or the 21-day EMAA rising average in Stage 2, met from above
The pivotA breakout's pivot price, retested from above
A prior highA swing high at least 10 sessions old that price trades above, then closes back below
A failed breakout's pivotThe pivot of a breakout that failed, met again from below
The 50-day or the 21-day EMA from belowA falling average in Stage 3 or 4, met from below

Salesforce's was a prior-high inside day: it traded above the Dec 11 high and closed back below it, so it shows with the default switch. Tesla's had no key level under it, at a fresh 60-session low. To see ones like it, turn Only at a key level off.

The place matters all the more because inside days are common. On 132 stocks over the last five years, about one session in nine was an inside day. In the middle of a range they mean little. Tesla was in Stage 4, Stan Weinstein's declining stage, and its inside day marked the end of the decline. Salesforce was in Stage 1, the basing stage, and its inside day marked the top of the base's rally.

How to trade an inside day#

How to trade an inside day: a decline into a key level, a wide day 1 that undercuts it, day 2 inside day 1's range, Entry A at day 2's close, Entry B at the first close above day 1's high, the stop just under day 1's low, and the rally measured in multiples of the risk (+1R, +2R, +3R). At a high, the same steps run upside down.
  1. Find the place. Look for an inside day at a prior high or a fresh multi-month high after a rally, or at a prior low or a multi-month low after a decline, like Tesla's in April 2025 and Salesforce's in December 2025.
  2. Check the range. Day 2's high at or under day 1's high, its low at or over day 1's low. The bodies and colours do not count.
  3. Wait for the close out of day 1's range. At a low, buy the first close above day 1's high. At a high, sell the first close below day 1's low. Tesla gave that close the next session, Salesforce two sessions later. Some traders take day 2's own close instead, an entry closer to the stop, as in the table above. The breakout close can come far from the stop: Tesla's came after a 22.7% day, 21.3% above day 1's low.
  4. Put the stop on the other side. Under day 1's low when you buy, above day 1's high when you sell. The terminal draws no stop for an inside day, so set it yourself from day 1's high or low.
  5. Size from the stop. Shares = money at risk ÷ (entry − stop). With $500 at risk on TSLA: 500 ÷ (221.86 − 214.25) = 65 shares.

Find inside days on any chart in VCP Scanner#

  • Open a stock in the terminal, for example TSLA or CRM.
  • Open Candles in the chart toolbar and tick Inside day under Neutral.
  • Only at a key level is on by default. Turn it off to see every inside day on the chart, and expect many.
  • The chart jumps to the latest inside day. A dot marks each one under the pair, and the inspector shows both dates, day 1 → day 2.
  • The inspector lists the close, level, volume and stage. When the inside day is the bar's only name it shows no stop, because it points neither way. Walk through the others with the ← and → keys.
  • Mark the ones you care about with the drawing tools. The arrows in the charts above are the Arrow Marker (Alt+A): click where the arrow starts, then click the candle.

Candles are free, on daily, weekly and monthly charts.

Bottom line#

  • An inside day is a second day whose whole range fits inside the first: the stock paused, and the next close out of that range picks the direction.
  • Tesla's marked its April 2025 tariff low and Salesforce's its December 2025 top. They risked 3.4% and 1.2%. Tesla rose 100.5% within 120 sessions, and Salesforce fell 43.5%.
  • Day 1's other end is the stop. It defines your risk before you take the trade.

Data: VCPScanner daily market data through Nov 6, 2026, split-adjusted. The examples are for education, not recommendations.

Next lesson · 25 of 44Outside dayTexas Instruments printed an outside day at its November 2025 low, PayPal at its August 2022 top. The rules, the stop and what followed.Read the lesson

Quick answers

Is an inside day bullish or bearish?

Neither on its own. Day 2 stayed inside day 1's range, so the market paused, and the first close out of that range picks the direction. Tesla's at its April 2025 low broke up the next session, Salesforce's at its December 2025 top broke down two sessions later.

What is the difference between an inside day and a harami?

An inside day looks only at the range, high to low. A harami looks only at the bodies, needs a long first body and comes after a decline or a rally. Many haramis are inside days too, and then the terminal names the harami first.

Where does the stop go on an inside day?

Beyond day 1's other end. Under day 1's low when you buy one at a low, above day 1's high when you sell one at a high. The terminal draws no stop for it, because an inside day alone points neither way.

Is an inside day the same as an inside bar?

Yes. On a daily chart the inside bar is an inside day. Day 1 is often called the mother bar, because day 2 fits inside it.

How common is an inside day?

Common. On 132 stocks over the last five years, about one session in nine was an inside day. That is why the place matters, a key level or a fresh multi-month low or high, more than the pair itself.

Anish Das

Anish DasMBA, IIM Kozhikode · Founder & Individual Investor

Founder of VCP Scanner, former Flipkart Brand Manager, and active US equity investor focused on transparent research workflows.

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