Trading Previous-Day High, Low, and Close Levels as Support and Resistance

Summary

This indicator marks the previous trading day's high, low, and close on a price chart. The high and low are presented as possible resistance and support, while the close can serve as a pivot or reference point. The levels are sourced from daily data regardless of the chart timeframe. The most recent day's lines extend into the current session; older levels are shown with a different line style, and the indicator can display historical levels and optional touch alerts.

The accompanying ideas include watching for rejection or breakout at the prior high and low, considering retests after price opens beyond either level, and using the prior close as a possible early-session barrier or target. These are discretionary hypotheses, not tested rules: the document provides no performance data or evidence that these levels reliably attract price reactions. Alert settings include a touch tolerance and daily reset, and sessions without trading data are skipped. The indicator is described for forex charts, with hourly or four-hour views suggested for observing interactions.

Key ideas

• The indicator plots the previous day's high, low, and close using daily data on charts of any timeframe.
• The prior high and low are treated as potential resistance and support, while the close can act as a pivot.
• The suggested setups include retests after an open beyond the prior high or low and breakouts above stacked highs.
• Optional alerts can notify users when price touches prior-day levels, subject to a tolerance and daily reset.
• The document offers trading ideas but no testing evidence that the levels predict price reactions.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.