Previous Day High and Low

[FxSuperb]

Hey there, I built this indicator for my old strategy. The previous day’s high and low price levels play a significant role in day trading, and these levels need to be monitored closely.

The indicator is attached, and you can download it for free!


Blue line - Previous day high
Red Line - Previous day low
Middle (doted) Line -Average previous day price

I built my previous strategy entirely around these levels. If I expect a ranging day, I trade between the levels. In such market conditions, the high and low levels act as strong support and resistance.

If you expect the market to move up, you should look to buy near support at a premium price—and the opposite applies for selling. I usually monitor these levels on higher timeframes, such as H1 and sometimes H4, while searching for the best entries on smaller timeframes like M1 and M5. This strategy requires more experience.

If you anticipate trend continuation, you can consider entering around the average daily price in the direction of the trend, using your setups. This approach can be adapted to almost any strategy.

I hope you find it useful! If you have any questions, feel free to ask—I’m here to help.

Thank you!

 

[ChelseaR]

That’s interesting! I have used the previous day levels as a reference when I was trading in range-bound markets. Were you able to manage false breakouts around the levels on the M1 and M5 timeframes?

 

[FxSuperb]

I use them everywhere in my technical analysis