Price action and chart patterns
Previous day high and low
The highest and lowest prices of the previous trading day, two of the most watched levels on any intraday chart.
Why it works
Stops and breakout orders gather just beyond them. Price often reacts on the first touch, or sweeps them before reversing.
How to use it
Mark the previous day high and low every morning. Use them as targets, as reaction zones and as places to avoid for your stop.
The typical mistake
Buying a breakout above the previous day high with the stop just below it, inside the sweep zone.
FAQ
What is PDH / PDL in trading?
The highest and lowest prices of the previous trading day, two of the most watched levels on any intraday chart.
How do you trade PDH / PDL?
Mark the previous day high and low every morning. Use them as targets, as reaction zones and as places to avoid for your stop.