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+ "page_name": "Using Previous Day\u2019s High/Low for Intraday Bias | by CryptoCred ...",
+ "page_url": "https://medium.com/@cryptocreddy/using-previous-days-high-low-for-intraday-bias-798fbd7d9509",
+ "page_snippet": "Derive an actionable intraday bias using the daily chart.The aim of this article is to provide insights on how the daily chart can be used to derive a shorter-term or intraday directional bias. This article will assume prior knowledge of what directional\u2026 Trading in a time frame vacuum is very difficult. Even for low time frame traders, it is advisable to know what the high time frames look like in order to be cognisant of the dominant trend, key levels that may not be visible on lower time frames, and so on. Q: Price is likely to find support and reverse in this area. Where is liquidity likely to be resting (in this case: sell stops of existing long positions and where breakout traders are likely to sell) to allow smarter counter-parties to take the other side? A: Below yesterday\u2019s low. Q: Price is likely to find resistance and reverse in this area. Where is liquidity likely to be resting (in this case: buy stops of existing short positions and where breakout traders are likely to buy) to allow smarter counter-parties to take the other side? A: Above yesterday\u2019s high.",
+ "page_result": "Using Previous Day\u2019s High/Low for Intraday Bias | by CryptoCred | Medium
The aim of this article is to provide insights on how the daily chart can be used to derive a shorter-term or intraday directional bias.
This article will assume prior knowledge of what directional bias entails. Should you not have a clue, I strongly suggest you read my article on the topic before continuing with this one.
I am not a financial advisor. This article contains no financial, investment, legal, or other regulated forms of advice.
It is strictly for entertainment purposes only.
Trading is risky and you can lose all of your capital (and more).
You are reading the musings of a 22-year-old writing articles on the internet from his beloved mother\u2019s basement.
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Outline
The aim of this article is to provide insights on how the daily chart can be used to derive a shorter-term or intraday directional bias.
In other words, we are looking at ways to gain insights from the higher time frames about how the lower time frames may develop. It is a form of multi-time frame analysis.
Trading in a time frame vacuum is very difficult. Even for low time frame traders, it is advisable to know what the high time frames look like in order to be cognisant of the dominant trend, key levels that may not be visible on lower time frames, and so on.
In my view, good technical trading deconstructs the price chart of an instrument from top to bottom and then engages the market as prescribed by one\u2019s trading rules/system.
The specific focus of this article is using previous day\u2019s high/low to:
1. Derive an intraday bias.
2. Provide entry trigger criteria for setups.
3. Provide clear invalidation levels for intraday setups i.e. trades taken in the direction of the intraday bias.
This setup logic is applicable for both i) intraday traders looking to capture the daily range; and ii) swing traders looking to get positioned for a bigger move.
I would also posit that the setup logic is applicable to higher time frames e.g. previous week\u2019s high/low.
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Using Previous Day\u2019s High/Low to Derive an Intraday Bias
I will first outline the core premise of this setup, and then further develop it by discussing the nuance required to make it work well i.e. probability enhancers.
Core premise:
1. Weakness above previous day\u2019s high can be used to derive a bearish intraday bias.
2. Strength below previous day\u2019s low can be used to derive a bullish intraday bias.
To ensure that the terms are clear:
Previous day\u2019s high: highest traded price of the last/preceding daily time frame candle i.e. yesterday\u2019s high.
Previous day\u2019s low: lowest traded price of the last/preceding daily time frame candle i.e. yesterday\u2019s low.
Previous day\u2019s low.
Previous day\u2019s high.
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It is tempting to learn the skeleton of a concept and immediately go looking for the nearest examples to trade.
This is ill-advised.
This specific setup is very context-dependent.
Trading is not as easy as selling above yesterday\u2019s high/buying below yesterday\u2019s low and jetting off into retirement.
Given the fact that price will very often violate the high/low of a preceding day, one must separate the signal from the noise using additional technical factors.
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Context 1: Support/Resistance Structures
This setup aims to outline reversal opportunities derived from the daily chart.
It follows that the setup will be more likely to succeed in areas where price is likely to reverse i.e. high time frame support/resistance structures.
I only use previous day\u2019s high/low to derive an intraday directional bias where price is at daily support/resistance.
Accordingly:
I will look for weakness above previous day\u2019s high where price is at daily (or higher time frame) resistance.
I will look for strength below previous day\u2019s low where price is at daily (or higher time frame) support.
What specific technical tools you elect to use to delineate support/resistance matters little, as long as you\u2019re not picking levels at random. Horizontal S/R and other price action concepts work well. I rely exclusively on the former, but I cannot see a good reason why this wouldn\u2019t work with other tools e.g. MAs, indicator-generated levels, ATR levels, and so on.
Treat these examples (and examples in technical trading education generally) with at least a bag of salt.
They are, by definition, conveniently pulled from one\u2019s arse in a way that shows them working seamlessly, which is rarely the case.
I\u2019ve included them to avoid castigation by the crowd, but also to demonstrate the broader point that context is very important and this concept works best in areas of high time frame support/resistance.
Another way to think about it is as follows:
Bullish
Q: Price is likely to find support and reverse in this area. Where is liquidity likely to be resting (in this case: sell stops of existing long positions and where breakout traders are likely to sell) to allow smarter counter-parties to take the other side? A: Below yesterday\u2019s low.
Bearish
Q: Price is likely to find resistance and reverse in this area. Where is liquidity likely to be resting (in this case: buy stops of existing short positions and where breakout traders are likely to buy) to allow smarter counter-parties to take the other side? A: Above yesterday\u2019s high.
If that means very little to you, I advise you to watch my basic video on order flow here.
Do not look for these setups everywhere. Ensure price is in a logical area of high time frame support/resistance to add the required context to your idea.
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Context 2: Dominant Trend
Dominant trend can either make technical analysis look like God\u2019s gift, or Satan\u2019s wrath.
Melodramatic phrasing aside, technical trading in the direction of a dominant trend is a powerful probability enhancer.
Trading against a dominant trend, especially in fast and momentum-driven markets like crypto, is an excellent way to lose one\u2019s money.
In a dominant downtrend, support is more likely to break and resistance is more likely to hold.
In a dominant uptrend, resistance is more likely to break and support is more likely to hold.
How do these principles apply to the setup we are discussing?
In a dominant downtrend, looking for weakness above previous day\u2019s high is more likely to result in success.
In a dominant uptrend, looking for strength below previous day\u2019s low is more likely to result in success.
Much like electing support/resistance structures, the tools you use don\u2019t matter a whole lot as long as you know how to use them and they work. I once again defer to my article on directional bias for further guidance.
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Now the probability enhancers are starting to come together.
One can greatly increase the win rate of this setup by i) looking for it in areas where price is likely to reverse i.e. high time frame support/resistance levels; and ii) taking it in the direction of the dominant trend.
Who would\u2019ve thought?
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Entry Trigger Criteria
So we have established the following:
One can derive an intraday bias using previous day\u2019s high/low.
Bearish setups are derived from weakness above previous day\u2019s high.
Bullish setups are derived from strength below previous day\u2019s low.
Setups are more likely to result in success when they are taken in tandem with high time frame/support resistance and in the same direction as the dominant trend.
If any of these look foreign, go back and reread the appropriate section.
\u2014
The remaining elements of a setup (at least those within the scope of this article) are entry criteria and invalidation.
If the term \u2018entry triggers/criteria\u2019 means nothing to you, please watch my video on the topic here.
(Gosh, it\u2019s so terribly convenient to have a plethora of technical analysis content to be able to refer to).
This section will be split into two parts.
Part 1 will describe what strength below previous day\u2019s low and weakness above previous day\u2019s high look like and tools that can be used to identify them.
Part 2 will describe entry triggers once strength or weakness have been identified.
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Part 1: Identifying Strength Below Previous Day\u2019s Low/Weakness Above Previous Day\u2019s High
As mentioned, this setup relies on strength/weakness at key levels.
This section will outline 2 tools I personally use when looking out for this setup. I am sure there are plenty more and I strongly encourage independent research in this area.
Low Time Frame Price Action
Low time frame price action can be an excellent indicator of strength/weakness at key levels (pun entirely intended).
I like to watch previous day\u2019s high/low on low time frames for generic signs of strength/weakness. That means I have the key level delineated and treat it like any other support/resistance structure, just observed via the lens of lower time frames.
You can throw the price action kitchen sink at it: candlestick patterns, reversal patterns (over/under/QM/deviation), chart patterns, and so on. More on this later.
The most important thing is i) evidence of rejection above previous day\u2019s high/below previous day\u2019s low; and ii) impulsiveness back below/back above the high time frame level.
Bullish: Clear evidence that the market is rejecting price below previous day\u2019s low i.e. price is not allowed to stay there for long before moving back up.
Bearish: Clear evidence that the market is rejecting price above previous day\u2019s high i.e. price is not allowed to stay there for long before moving back down.
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Let\u2019s take an example in Ethereum/Dollar.
What\u2019s going on?
Dominant downtrend intact.
Price retested resistance and closed below it \u2014 excellent context when anticipating a bearish setup or bearish follow through. (This is one of my favourite contextual settings. Price respecting support/resistance but no impulsiveness yet. Spike previous day\u2019s high and follow through the bearish close.)
Now let\u2019s look at some lower time frames for identifying strength/weakness (weakness in this case given we\u2019re bearish).
What\u2019s going on?
Price spikes the equal highs at the M30 level.
Prints a shit-looking candle with a tall wick (candlestick armchair experts GTFO).
Overt rejection via bearish engulfing candle that brings price firmly back below i) previous day\u2019s high; and ii) the high time frame level itself.
Specific entries aside, the core component of a bearish price action entry is present: clear evidence that the market is rejecting price above previous day\u2019s high which is followed by a break back below high time frame resistance.
\u2014
Let\u2019s look at another example in Ethereum/Bitcoin.
What\u2019s going on?
Retest of a key high time frame range high (support) following breakout. You could also delineate this area as the base of the last rally. Support either way. Not going to argue the nuances of trend here as different systems will yield different results, but at the very least it\u2019s not unreasonable to expect a bounce.
Price retested support and closed above it \u2014 excellent context when anticipating a bullish setup or bullish follow through. (This is one of my favourite contextual settings. Price respecting support/resistance but no impulsiveness yet. Spike previous day\u2019s low and follow through the bullish close.)
Now let\u2019s look at some lower time frames for identifying strength/weakness (strength in this case given we\u2019re bullish).
What\u2019s going on?
Price closes below previous day\u2019s low and is bought up immediately \u2014 next candle closes back above it.
Previous day\u2019s low retested as support following a deviation below it.
Tight range forms at high time frame support (blue) and is then broken very impulsively with vertical continuation.
Bonus: price pulls back to .618 level (and daily open) following breakout.
Again, we are looking out for signs of of rejection below previous day\u2019s low and subsequent impulsiveness as a result of the rejection. In this case, the signs took the form of an immediate reclaim and subsequent aggressive range breakout.
It\u2019s often very \u2018obvious\u2019 but it helps to have a rough idea using price action concepts.
\u2014
Hopefully another thing that\u2019s clearer with these examples is the many ways in which price can show evidence of bullishness/bearishness around key levels.
There isn\u2019t always going to be a single, recurring pattern that will make it clear as day. This is what I meant by the proverbial kitchen sink \u2014 a lot of stuff work, as you\u2019ll learn in the section covering entry triggers.
Candlesticks, chart patterns, SFPs, three drives, range breakouts, market structure, and so on. Whatever tools you typically use to gauge strength/weakness will very likely be pertinent at some point.
At the risk of sounding like a broken record, the result is more important than the journey i.e. whatever tool you use to identify strength/weakness, it must result in price breaking back below previous day\u2019s high and below high time frame resistance (if bearish)/price breaking back above previous day\u2019s low and above high time frame support (if bullish).
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Low Time Frame Momentum Exhaustion
Another tool that can be used to gauge strength/weakness at key levels is momentum exhaustion (or perhaps, more specifically, divergence).
Oscillator divergence is when price makes a lower low but the oscillator shows a higher low (bullish)/price makes a higher high but the oscillator shows a lower high i.e. diverges from what price is showing.
The oscillator itself doesn\u2019t matter too much and there are plenty of tools available. The basics (RSI, MACD, and so on) work well, but again, independent research is encouraged.
Example: Bearish RSI and MACD divergence above previous day\u2019s high in BTC/USD at high time frame resistance.
Example: Bullish RSI divergence below previous day\u2019s low in XRP/BTC at high time frame support.
A kind reminder that this section focuses on gauging strength, not on entry triggers per se. There is no expectation to catch every divergence and to use it to enter the trade. Spotting it is enough, entry triggers come later.
Also note: price action techniques and indicator techniques are not mutually exclusive when ascertaining strength/weakness at a key level. As should hopefully be clear from the charts, often you will get both e.g. bullish oscillator divergence and a bullish price action pattern.
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Part 2: Entry Triggers
So we have established the following:
One can derive an intraday bias using previous day\u2019s high/low.
Bearish setups are derived from weakness above previous day\u2019s high.
Bullish setups are derived from strength below previous day\u2019s low.
Setups are more likely to result in success when they are taken in tandem with high time frame/support resistance and in the same direction as the dominant trend.
Identifying strength/weakness at key levels using price action concepts.
Identifying strength/weakness at key levels using indicators.
If any of these look foreign, go back and reread the appropriate section.
\u2014
With all that in mind, this section will outline some ways to get positioned in an instrument once all the necessary elements of the setup have been satisfied.
This article will focus on 2 specific techniques:
Discretionary Price Action Entry
Daily Open Flip
Much like ascertaining strength/weakness using different techniques, you can also use these two entry triggers together.
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Entry Trigger 1: Discretionary Price Action Entry
This sounds as effective as drinking soup with a fork, but I assure you that there is some merit here.
I outlined in the \u2018Low Time Frame Price Action\u2019 section that the key ingredient when assessing strength/weakness is clear, overt, and impulsive rejection above previous day\u2019s high (if bearish)/below previous day\u2019s low (if bullish).
Given that we\u2019re looking at low time frames, a lot of different microstructures can form, each offering a different type of entry.
Some examples:
Entering on the close of an engulfing candle/outside bar that takes price back within a key level (ETH/USD example) \u2014 Candlestick entry
Entering on the breakout of a range that forms at the key level (ETH/BTC example) \u2014 Range-based entry
Entering on a pullback following a reclaim of a key level/once price has done what is expected (ETH/BTC .618 example) \u2014 Retracement entry
Entering on the formation of a reversal pattern above/below a key level e.g. QM/Over-Under/SFP/3-Drives/CDC etc. \u2014 Price pattern entry
Entering on low time frame candle closes back above/below key levels \u2014 Momentum/breakout entry
Entering on low time frame support/resistance flips or breaks at the level (both horizontal and diagonal) \u2014 S/R entry (or, similar to (2), market structure entry)
The list goes on, and as before, these entry triggers are not mutually exclusive.
Almost every scenario will be different. Sometimes there will be a really clear low time frame pattern that you can trade, other times the only possible entry will be based on momentum. In my personal experience, as a discretionary gambler, trying to be too systematic in ascertaining entry triggers for this setup can hamstring progress.
I have had more success by outlining the entry patterns that I am familiar with (similar to the above) so that I can recognise them and get positioned even if my ideal structure doesn\u2019t form.
We\u2019re dealing with quite low time frames in this portion of the setup (M5\u2013M15) and that usually warrants a tad more flexibility, in my experience.
I would encourage independent study in this area, and specifically looking at how your existing sketchbook of patterns that you trade can be applied to lower time frames.
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Entry Trigger 2: Daily Open Flip
If you\u2019re not amused by the chaotic characteristics of vastly discretionary and diverse low time frame entries, hopefully you find the daily open flip more agreeable.
The core premise is to use the low time frame flip of the daily open level as en entry trigger.
Bullish: Entering on low time frame candle closes above the daily open level.
Bearish: Entering on low time frame candle closes below the daily open level.
Daily open is defined as the open of the current/existing trading day (easily found using the daily chart).
The logic is fairly straightforward.
Consider the formation of the daily candle. There\u2019s an Open, High, Low, and Close.
Assume we\u2019re anticipating a bullish day i.e. Closing Price > Opening Price.
What about the wicks?
Price action that occurs below previous day\u2019s low is anticipated to be the wick portion. By definition, while price is dipping below previous day\u2019s low it is below the daily open. Once price has probed an area of liquidity in the form of previous day\u2019s low, it can now expand. This expansion takes price above the daily open and forms the high and close of the day.
This isn\u2019t exact, but a rough visualisation of the concepts:
Candle opens (price at daily open) \u2192 price dips below previous day\u2019s low (price below daily open) \u2192 price spikes previous day\u2019s low and can now expand (still below daily open) \u2192 expansion (takes price above daily open)
Here\u2019s a bullish example in Ethereum/Bitcoin.
Bullish daily open flip in Ethereum/Bitcoin.
As you can probably tell, even the daily open flip can offer more than one specific entry trigger.
Daily Open Flip \u2014 Market Entry:Getting positioned at market once lower time frame candles close back above/below the daily open (with price having reached its objective below previous day\u2019s low/above previous day\u2019s high).
Daily Open Flip \u2014 Limit Entry: Using the daily open as a dynamic support/resistance level and buying/selling a retest.
I hope I\u2019ve stressed this ad nauseam, but I\u2019ll do it again just to be clear:
The daily open flip is only relevant if price already reached and rejected above previous day\u2019s high/below previous day\u2019s low. The daily open only becomes relevant once the spike and rejection have taken place. Do not blindly long above it/sell below it without the requisite context!
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This concludes the section on entry triggers.
The important thing to remember is that there is no single, correct way to get positioned in a market.
Especially with this setup, it\u2019s not simply buying/selling a level but rather building a picture of price based on multi-time frame analysis.
If you\u2019re right, you are very well-positioned to capture the bulk of a daily range or (given we are relying on high time frame levels) a large swing. As a result, your entry needn\u2019t be tick-perfect. That\u2019s not a carte blanche for wild market entries, but more a reminder that adhering to the logic of the setup doesn\u2019t require a perfect snipe.
\u2014
Invalidation Levels
So we have established the following:
One can derive an intraday bias using previous day\u2019s high/low.
Bearish setups are derived from weakness above previous day\u2019s high.
Bullish setups are derived from strength below previous day\u2019s low.
Setups are more likely to result in success when they are taken in tandem with high time frame/support resistance and in the same direction as the dominant trend.
Identifying strength/weakness at key levels using price action concepts.
Identifying strength/weakness at key levels using indicators.
Getting positioned having identified strength/weakness at a level using price action entries.
Getting positioned having identified strength/weakness at a level using the daily open.
If any of these look foreign, go back and reread the appropriate section.
Bullish setup: Invalidation is the low of day once previous day\u2019s low has been spiked and an entry has triggered.
Bearish setup: Invalidation is the high of day once previous day\u2019s high has been spiked and an entry has triggered.
Again, it is important that price actually gives you an entry trigger (in the form of bearish/bullish follow through of some sort) before you jump on a trade and slap a stop order on the high/low.
For example, it\u2019s entirely reasonable for price to poke below previous day\u2019s low, float around the level, and then continue downwards. That is why having an entry trigger that is predicated on some form of impulsiveness or follow through is so important; it greatly reduces the rate of false signals and thus ensures you\u2019re not punting a trade every time price probes an area where there may be resting orders.
Don\u2019t jump the gun, and always look for the type of overt rejection described in the section discussing strength/weakness identification.
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The stop placement logic is also quite straightforward. Let\u2019s explore the bearish example.
If a market is truly bearish, stops above yesterday\u2019s high have been purged, and there has been a subsequent breakdown, then there should be no good reason for price to violate the high of the day. The high should be in.
Alternatively, thinking about it in terms of candlestick development: if you are right about direction, then the wick portion of the candle has already been set (the price action above yesterday\u2019s high) and bearish expansion should follow.
To paraphrase something DonAlt says quite often: if you\u2019re right, the stop hunt shouldn\u2019t get stop hunted.
\u2014
As per the overthrow video, you may elect for a tighter/wider stop depending on the circumstances of the setup.
For example, the low time frame entry trigger you use may provide a different (usually tighter) invalidation level that you may prefer. Conversely, the high/low of day may fall into an area where you typically avoid placing a stop order.
The high/low of day is an excellent starting point and it adheres to the logic of the setup. In the overwhelming majority of cases I use it for my invalidation. However, as with anything, it is just a starting point. I strongly suggest exploring different ways of defining risk once you are comfortable (and profitable!) with the more basic layout.
\u2014
Conclusion
I\u2019ll spare you the entire list of concepts that you (hopefully) learnt from the article.
As with most of my content, this article ended up being much longer than expected.
Thank you if you read the whole thing and made it this far!
I\u2019m not going to summarise or paraphrase the whole lesson. It\u2019s too long. So, uh, reread it I guess?
Using previous day\u2019s high/low is a tool like any other. It won\u2019t always work. It will work well and more frequently when the context is appropriate. What I like about it is the multi-time frame analysis involved and the clear, replicable risk definition.
If you happen to catch a setup using this technique or something similar, please tweet me @CryptoCred. I love receiving those sorts of tweets.
\u2014
My friend DonAlt and I write a weekly newsletter called TechnicalRoundup.
High time frame technicals of Bitcoin and the Altcoin/Bitcoin majors.
You receive it every Tuesday at 20:00 UTC.
We think it\u2019s really good.
There\u2019s a full, free preview available on our site. No sign-ups or any such nonsense required, just click the \u2018Preview\u2019 button.
If it looks like your cup of tea, sign up and receive 120+ pages of analysis/month for $30 (excl. VAT).
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+ "page_name": "How to Use the Previous Day High Low Breakout Strategy",
+ "page_url": "https://mtrading.com/education/articles/forex-strategy/how-use-previous-day-high-low-breakout-strategy",
+ "page_snippet": "Rules to follow while utilizing the previous day's high low breakout strategy. Technique pros and cons to consider as well as risk to get ready for.The previous day high low breakout strategy refers to the day trading technique that provides traders with multiple opportunities to go either long or short. The main idea is to identify the trend in its most juicy state followed by a trending move. Just like any other day trading tactics, the previous day's high and low trading strategy requires processing a bunch of technical analysis data within a limited time frame. The idea is quite simple. With this strategy, traders no longer need to track from 5 to 10-day ranges and keep the focus on the previous day\u2019s recent range lows and highs instead. Every stock leaves a specific trait depending on the market operators trading the asset throughout the day. The idea of the previous day breakout strategy is to keep an eye on those ranges and enter a market with either a long or short position while exploiting the range. To utilize the strategy, traders are supposed to meet the following requirements: With so many traders using the strategy, a few players actually consider the market volatility while the majority simply ignore it. There is no sense in waiting for the range of $2 to move to a $10-price tag.",
+ "page_result": "\n\n\n \n \n \n Previous Day High Low Breakout Strategy Tips - MTrading\n \n \n \n \n \n \n\n \n \n \n \n \n \n \n \n \n \n \n\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \n \n\n \n\n \n\n\n\n\n\n\n\n\n\n \n \n \n \n \n\n \n \n\n \n \n\n \n \n \n\n \n \n \n\n\n\n\n\n\n
How to Use the Previous Day High Low Breakout Strategy
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The previous day high low breakout strategy refers to the day trading technique that provides traders with multiple opportunities to go either long or short. The main idea is to identify the trend in its most juicy state followed by a trending move. Just like any other day trading tactics, the previous day's high and low trading strategy requires processing a bunch of technical analysis data within a limited time frame. So, it can be quite complex for beginners though with high-profit potential.
Today, we are going to discuss all strategy pros and cons as well as ways to utilize it under real-market conditions.
How the Previous Day High Low Breakout Strategy Works
The idea is quite simple. With this strategy, traders no longer need to track from 5 to 10-day ranges and keep the focus on the previous day\u2019s recent range lows and highs instead. Every stock leaves a specific trait depending on the market operators trading the asset throughout the day. On the other hand, both bears and bulls tend to establish specific trading boundaries that limit a stock when moving in a specific direction.
The idea of the previous day breakout strategy is to keep an eye on those ranges and enter a market with either a long or short position while exploiting the range. To utilize the strategy, traders are supposed to meet the following requirements:
Identify the price range of the previous day\u2019s high and low.
Use the 2-day historical data to compare the previous day range with the one set two days ago. It will let you prevent erratic ranges.
If the current breakout exceeds the previous days\u2019 range by at least 10%, you can enter the market with either buy or sell positions.
If you want to avoid or stop the trade, you can use moving averages. One of the approaches may involve going short when the predefined price tag is reached.
The Previous Day High and Low Strategy Pros and Cons
Like every trading strategy, the previous day's high and low technique has some advantages and disadvantages. The only thing you should always keep in mind is the fact that the strategy can be used mainly as part of a short-term concept.
Pros:
With so many traders using the strategy, a few players actually consider the market volatility while the majority simply ignore it. There is no sense in waiting for the range of $2 to move to a $10-price tag.
Entry levels are not as obvious as they may seem. Sometimes, they are hidden from traders. At the same time, the strategy offers less obvious highs and lows if compared to other strategies alike.
Cons:
The strategy is complex, as every cent matters when approaching the bottom line. Besides, you may need a signal confirmation to avoid fake or misleading signals.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.
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+ {
+ "page_name": "Today's High: What It Is, How It Works, Example",
+ "page_url": "https://www.investopedia.com/terms/t/todayshigh.asp",
+ "page_snippet": "Today's high refers to a security's intraday high trading price or the highest price at which a stock traded during the course of the day.This can be contrasted with today's low, which is the trading day's intraday low price. Today's high provides information to traders and investors on a stock's price, what news is driving the price that day, what might be a good entry and exit point into and out of the stock, and what the future outlook of the stock's price might be. Today's high is the highest price at which a stock traded during the course of the trading day and is typically higher than the closing or equal to the opening price. It may be used when calculating a moving average. One way that day traders and technical analysts use today's high, along with today's low, is to help them identify gaps or sudden jumps up or down in a stock's price with no trading in between those two prices. Short-term traders, such as day traders, use intraday price movements and charts to determine the correct time to enter or exit a trade. Based upon this analysis, they implement trading strategies and capitalize on short-term price fluctuations.",
+ "page_result": "\n\t\t\t\t\n\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t \n \n \n\n\t\t\t\t\t\n\t\t\t\t\t\n\n\n\n\n\n\n\n\nToday's High: What It Is, How It Works, Example\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n \n\n\t\t\t\t\t\n\t\t\t\t\t\t\t\n\n\t\t\n\n\n\n\n\n\n\n
James Chen, CMT is an expert trader, investment adviser, and global market strategist.\" tabindex=\"0\" data-inline-tooltip=\"true\">\nJames Chen\n
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James Chen, CMT is an expert trader, investment adviser, and global market strategist.
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Updated May 12, 2022
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Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South Carolina, where he launched his own financial advisory firm in 2018.\u00a0Thomas' experience gives him expertise in a variety of areas including investments, retirement, insurance, and financial planning.\" tabindex=\"0\" data-inline-tooltip=\"true\">\nThomas J. Catalano\n
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What Is Today's High?
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\nToday's high refers to a security's intraday highest trading price. It is represented by the highest point on a day's stock chart. This can be contrasted with today's low, which is the trading day's intraday low price. Today's high provides information to traders and investors on a stock's price, what news is driving the price that day, what might be a good entry and exit point into and out of the stock, and what the future outlook of the stock's price might be.\n
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\nKey Takeaways
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Today's high is the highest intraday price for a security on a given trading day.
The intraday high is often listed as a basic price quote alongside the current price and intraday low.
Day traders are particularly attuned to today's high and low prices in order to find signals to put on or take off trades.
Today's high provides insight into a stock's price, such as what news drove the price high and what other factors it is sensitive to.
Today's high is also used in calculating moving averages, which is a component of technical analysis.
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Understanding Today's High
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\nToday's high is the highest price at which a stock traded during the course of the trading day and is typically higher than the closing or equal to the opening price. It may be used when calculating a moving average.\n
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\nOne way that day traders and technical analysts use today's high, along with today's low, is to help them identify gaps or sudden jumps up or down in a stock's price with no trading in between those two prices.\n
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\nFor example, if today's low is $25 and the previous day's high is $20, there would be a gap. The identification of a gap, along with other market signals such as changes in trading volume and overall bullish or bearish sentiment, helps market analysts generate buy and sell signals for particular stocks.\n
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Special Considerations
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\nShort-term traders, such as day traders, use intraday price movements and charts to determine the correct time to enter or exit a trade. Based upon this analysis, they implement trading strategies and capitalize on short-term price fluctuations.\n
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Today's high is an important component of a candlestick chart that traders use in making trading decisions, particularly when evaluating the short-term direction of a stock's price.
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\nIntraday strategies are also used to trade options. Option prices don\u2019t change as quickly as underlying stock prices, so traders use intraday prices to identify periods when the option is mispriced relative to the stock.\n
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Intraday High and Day Trading
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\nIntraday price movement is closely linked with day trading, the practice of buying and selling financial instruments within the same trading day. Many day traders are bankers or\u00a0investment\u00a0firm employees. However, since the advent of electronic trading, day trading has become increasingly popular with at-home traders.\n
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\nThere are numerous intraday strategies, which include scalping, where traders attempt to profit from incremental changes in price; range trading, which essentially uses support and resistance levels to determine buy and sell decisions; and news-based trading, which typically uses heightened volatility around news events that may create trading opportunities.\n
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Though it is impossible to time a stock's high or low value, it is generally considered best to avoid buying a stock at its daily high. Though if the long-term prospect of a stock is positive, this does not matter if an investor's strategy is to buy and hold.
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\nThe biggest advantage of intraday trading is that positions are not affected by the possibility of negative overnight news that has\u00a0the potential to materially impact the price of a\u00a0security. Examples of potentially negative overnight news\u00a0are key economic and earnings reports as well as\u00a0broker\u00a0upgrades and\u00a0downgrades\u00a0that occur, either before the market opens or after the market closes.\n
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\nTrading on an intraday basis offers several other key advantages that include the ability to use tight stop-loss orders and access to increased leverage. Disadvantages of intraday trading include insufficient time for a position to increase in profit and increased commission costs due to trades being taken more frequently.\n
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Real-World Example
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\nThe price movements of any stock are posted throughout the trading day and summarized at the end of the trading day. For example, on Nov. 1, 2021, shares of Apple Inc. (AAPL) opened at $148.89 and closed at $148.96. During the day, as indicated in the \"day's range,\" shares dropped as low as $148.00\u2014the intraday low\u2014and hit a peak of $149.22\u2014the intraday high (today's high).\n
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\nDay traders and technical analysts who follow Apple would study the shares' moves to see if they could discern any pattern or uncover any significant gap; that is, a sudden jump in the price with no trading in-between.\n
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How Do You Find Today\u2019s High on a Stock Chart?
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On a stock chart that represents the price of a stock as a line graph, today's high will be the highest point on the line graph for the given day. This point will represent the highest value that the stock price reached that day.
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How Do You Find Today\u2019s Low on a Stock Chart?
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On a stock chart that represents the price of a stock as a line graph, today's low will be the lowest point on the line graph for the given day. This point will represent the lowest value that the stock price reached that day.
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What Is the Importance of Today\u2019s High?
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The importance of today's high is that it serves as an indicator of where the stock's price has been trading, which provides traders and investors with insight into the stock, such as what news impacts the stock's price, what are possible entry and exit points into or out of the stock, and what the future trading range of the stock might look like.
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What Is the 52-Week High/Low?
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The 52-week high/low is the highest value and the lowest value that a stock's price has traded in the past 52 weeks, or one year. It provides traders and investors with insight into how the stock has traded over the course of the last year.
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What Is the 52-Week Range?
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The 52-week range is a data set that shows the different values of a stock's price in the previous 52 weeks, or one year. The 52-week range includes the 52-week high/low values and is useful information for traders and investors in determining the value of a stock.
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The Bottom Line
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\nToday's high is a data point on a stock chart that shows the highest value that a stock reached during a trading day. Along with today's low, today's high provides valuable information to traders and investors and helps them in making a variety of trading decisions.\n
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\nArticle Sources
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\nInvestopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our\neditorial policy.\n
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Google Finance. "Apple Inc." Accessed Nov. 2, 2021.
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\nRelated Terms
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\nIntraday Return: What it Means, How it Works\n
\nIntraday return measures the return of a financial security during regular trading hours, based on its price change from the open to close of a trading day
\nmore\n
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\nToday's Low: What It Means, How It Works\n
\nToday's low is the lowest price at which a specific stock trades over the course of a trading day.
\nmore\n
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\nVolume-Weighted Average Price (VWAP): Definition and Calculation\n
\nThe volume-weighted average price (VWAP) is a statistic used by traders to determine what the average price is based on both price and volume. Whether a price is above or below the VWAP helps assess current value and trend.
\nmore\n
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\nIntraday: Definition, Intraday Trading, and Intraday Strategies\n
\nIn the financial world, the term intraday is shorthand used to describe securities that trade on the markets during regular business hours and their highs and lows throughout the day. Day traders closely watch these moves, hoping to score quick profits.
\nmore\n
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\nBar Chart: Definition, How Analysts Use Them, and Example\n
\nA bar chart shows where the price of an asset moved over a period of time and is useful for tracking prices and aiding in trading decisions.
\nmore\n
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\nOpening Price: Definition, Example, Trading Strategies\n
\nThe opening price is the cost of a security at the opening of an exchange.
By clicking \u201cAccept All Cookies\u201d, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
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\t\t\n\n\n\t\t\n\n\t\t\n",
+ "page_last_modified": ""
+ },
+ {
+ "page_name": "Open high low - The intraday trading strategy",
+ "page_url": "https://www.nirmalbang.com/knowledge-center/open-high-low-strategy.html",
+ "page_snippet": "Open high low is one of the intraday trading strategy. Learn more about the strategy at Nirmal Bang.Investing in stocks or trading for years is known to be a game for those with real insidious news and finance skills.In other words, Intraday trading ensures that all positions are balanced off before the market ends and that there is no change in the management of shares as a result of trades. The strategy isn't as simple as it may seem. These trades are made in nifty scripts. The NIFTY 50 Index reflects around 10% of the free-float market capitalization of the shares listed on the NSE. This helps to pick the best sector to invest in and to pull the stocks out of the market at the right time. This type suggests that there is more buying demand in the stock that market investors were able to purchase the stock at a certain level throughout the day. The stock exchange hit its highest point for the day as a result. Open = low ~ buy in this situation. A trader will take a' Buy' spot within 5-10 minutes of the opening bell. Whenever the script follows the Days Open = Days Low formula. In this case, open = high ~ sell. Within 5-10 minutes of the opening bell, a trader will make a Sell spot. When the script implements the Days Open = Days Low formula. This Trading technique helps you to easily get more money out of the day of trading. However, try to leave and secure the gains as soon as possible.",
+ "page_result": "\r\n\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n Open high low - The intraday trading strategy\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n\r\n \r\n
\r\n In simple words, open high low strategy is a strategy in which the buying signal\r\n is generated when a stock has the same value for both, open and low. Similarly,\r\n the selling signal is generated when the stock has the same signal for both - open\r\n and high. Investing in stocks or trading for years is known to be a game for those\r\n with real insidious news and finance skills.In other words, \r\n Intraday trading ensures that all positions are balanced off before the\r\n market ends and that there is no change in the management of shares as a result\r\n of trades. This clearly shows that the money flows towards the shares that are going\r\n to rise, and by the time the market closes, the shares are withdrawn. Open High\r\n Low strategy is one of the most commonly used strategies. Let's dive right in and\r\n know more about it.\r\n
\r\n Although there are many names similar to each other in the market, the original\r\n name comes out to be open dive. It's very clear from the name as to why it would\r\n have been chosen. The name itself reflects the risks and advantages. As the strategy\r\n can make you rich or pick rags at the same time. The approach used in the open high-low\r\n strategy is that a buying signal is created when indexes or stocks have the same\r\n value, both open and low, meaning you should buy the shares. Alternatively, the\r\n sell signal is created when the indexes or stock has the same value, both open and\r\n high, meaning you should sell the shares.\r\n
\r\n
\r\n The strategy isn't as simple as it may seem. These trades are made in nifty scripts.\r\n The NIFTY\r\n 50 Index reflects around 10% of the free-float market capitalization of the shares\r\n listed on the NSE. This helps to pick the best sector to invest in and to pull the\r\n stocks out of the market at the right time. There are scanners to help interpret\r\n the stock price better with higher accuracy to know when and how to invest. Open\r\n High Low Scan is a method used to process scripts that are open=high or open=low.\r\n You can use any calculator to find thresholds to purchase or sell. Some online calculators\r\n will help you filter out the scripts that can be used for intraday transactions.\r\n
\r\n Not only does this solution require capital to gain profits, it requires full-proof\r\n strategies that have given fruitful results in history. It requires dedicated discipline\r\n towards learning the trend of the market. The money maintaining regime should be\r\n strict enough to prevent them from falling in the dirt of losses. Let's reconnoitre\r\n the ways to execute these plans successfully.
\r\n
\r\n
Once you have logged into your \r\n trading account before the market opens, i.e., before 9:15, invest the required\r\n sum of money in the trade.
\r\n
As mentioned above, select the predicted stocks to grow and add them to\r\n your watchlist of the nifty scripts.
\r\n
Once the above step is done by using scanners or physical methods, know\r\n the trend of the desired stocks.
\r\n
Once you are aware of the trend and you know the approximate graph strategy\r\n in which the stock can spend, including its growth factor, in compliance with the\r\n terms of the share.
\r\n
When the market opens, based on the price and forecast accuracy of the\r\n stock, you can quickly see the stock's fluctuating price and invest money or withdraw\r\n money.
\r\n
\r\n
\r\n Knowing the practicality of the strategy, you can easily withdraw money or invest\r\n money at the stocks low or can buy at the stocks high. When you've already applied\r\n an open high low trading approach to your benefit, you will leave buying whether\r\n at the end of the business day or as per your default stop loss.
\r\n There are two types of stocks in this strategy. The stocks of which the buyers control\r\n the price throughout the day. This type suggests that there is more buying demand\r\n in the stock that market investors were able to purchase the stock at a certain\r\n level throughout the day. The stock exchange hit its highest point for the day as\r\n a result. Open = low ~ buy in this situation. A trader will take a' Buy' spot within\r\n 5-10 minutes of the opening bell. Whenever the script follows the Days Open = Days\r\n Low formula.
\r\n
\r\n In the second type, it's vice-versa, i.e., the sellers have control of the price\r\n all along the day. It suggests that since there it was less trading pressure on\r\n the stock that market players sold at all prices during the day. As a consequence,\r\n the stock exchange ended similar to its low point of the day. In this case, open\r\n = high ~ sell. Within 5-10 minutes of the opening bell, a trader will make a Sell\r\n spot. When the script implements the Days Open = Days Low formula. This Trading\r\n technique helps you to easily get more money out of the day of trading. However,\r\n try to leave and secure the gains as soon as possible. This technique is likely\r\n to help you make money out of online trading in a shorter period.
\r\n When the market opens from the scanner, add the stocks that are open = low and open\r\n = high to the watchlist. In this way, you can find the open high low stocks.\r\n
\r\n
When to go on the buy-side and when to go on the sell side?\r\n
\r\n
\r\n Unless the Nifty50 index is over 0.25 %, go on the buy side, and if this is below\r\n 0.25 %, go on the sell-side. Although it depends as some people even keep the criteria\r\n at 0.5%.\r\n
\r\n
When to implement this open high low strategy?
\r\n
\r\n Post 30 minutes into the market opening at 9:15 am, if the high/low stays as estimated\r\n then go ahead and follow the initial strategy.\r\n
\r\n
Which chart is best for acknowledging intraday strategy?\r\n
\r\n
\r\n Tick\r\n charts are among the best reference points for intraday trading. When trade\r\n is big, the bar is shaped every minute. In a high-volume time, the tick chart provides\r\n insightful insights as opposed to any other graphic.\r\n
\r\n
What is a good profit to wind up?
\r\n
\r\n The right time to take the money invested out is as soon as your profit reaches\r\n 2% ideally.\r\n
\r\n
What should an intraday trader target?
\r\n
\r\n The risk appetite and the capability of a trader to invest should be the target\r\n till the end of the trading day.\r\n
\r\n
What is the right time to invest in trade?
\r\n
\r\n The best time to invest is after half an hour from the time the market opens as\r\n the trend by then is clear.\r\n
\r\n
Are multiple sources suggestable?
\r\n
\r\n Yes, they are. Multiple confirmations help you decide the trend before investing.\r\n
\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\n\r\n",
+ "page_last_modified": " Mon, 13 Sep 2021 05:38:31 GMT"
+ },
+ {
+ "page_name": "Daily High Low Forex Trading Strategy",
+ "page_url": "https://forextradingstrategies4u.com/daily-high-low-forex-trading-strategy/",
+ "page_snippet": "Learn How to Trade Forex Online With this Daily High Low Forex Trading Strategy with its simple trading rulesIf you are entering a trade after an out sized momentum move in price, an unbalanced force of buyers or sellers (depending on the position) will either take profits or contrarian trade, and force the market to revert. Traders who use this strategy typically look for currency pairs that have a clear daily trend, with consistent swing highs and swing lows over several days or weeks. This shows the currency pair is in a trend. Identifying Daily Highs and Lows is a simple but crucial aspect of the daily high low forex trading strategy. Traders can use these levels to identify the potential entry method area where the market may reverse or continue its trend. Both of the can be traded with any currency pair and on any time frame \u2013 although four hour charts and above are the most popular approaches. I prefer the daily because I can generally get a larger target than I would on a 5 minute chart. My reward to risk ratios are usually at least 2:1.",
+ "page_result": "\n\n\n\n\t\n\t\n\t\n\t\n\t\t\n\n\t\n\tDaily High Low Forex Trading Strategy\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\t\r\n\t\t\n\n\n\n\n\t\t\n\t\t\n\t\n\n\n
The daily high low Forex trading strategy is a simple trading technique based on a simple concept: if price breaks yesterday’s high or low, it will most likely continue in that direction of breakout.
\n
That is the common belief but the truth is, it depends.
\n
If you are trading a breakout of a candlestick that is larger than many that came before it, you may actually be taking a trade but get caught in the mean reverting tendency of the market.
\n
This is a basic breakout strategy and I’ve seen a few variations of it throughout the years. It all boils down to one thing:
\n
\u201cAn object in motion tends to stay in motion until acted upon by an unbalanced force.\u201d
\n
You can’t argue with the first law of motion but the second part is vital: an unbalanced force.
\n
If you are entering a trade after an out sized momentum move in price, an unbalanced force of buyers or sellers (depending on the position) will either take profits or contrarian trade, and force the market to revert.
\n
With that disclosure, do you think there is an edge in this type of trading? You should do your testing but it is possible there is a slight edge \u2013 very slight \u2013 it buying a high or selling a low depending on how far advanced the trend is.
\n\n
Understanding The Basics Of Daily High Low Forex Trading
\n
The strategy involves analyzing the daily high and low prices of currency pairs, and using this information to place trades that take advantage of potential price movements on the next trading day.
\n
\n
\n
Traders who use this strategy typically look for currency pairs that have a clear daily trend, with consistent swing highs and swing lows over several days or weeks.\u00a0 This shows the currency pair is in a trend.
\n
You can also use moving averages to determine the trend on the time frames you choose.
\n
Identifying Daily Highs And Lows
\n
Identifying Daily Highs and Lows is a simple but crucial aspect of the daily high low forex trading strategy. Traders can use these levels to identify the potential entry method area where the market may reverse or continue its trend.
\n
In order to identify daily highs and lows, traders should first look at the previous day’s price action.
\n
A daily high is the highest price that a currency pair reached during a trading day, while a daily low is the lowest price that it reached.
\n
Finding these areas on the daily chart is quite simple – just look at the candlesticks.\u00a0 You want to see clear trending candlesticks and not those in a trading range.
\n
When you accurately identify daily highs and lows on the price chart, you are better equipped to make trading decisions based on a strategy.
\n
Day Trading Strategies
\n
So how do you trade this?
\n
There are two basic strategies:\u00a0 With the trend and either direction.
\n
Both of the can be traded with any currency pair and on any time frame – although four hour charts and above are the most popular approaches.\u00a0 I prefer the daily because I can generally get a larger target than I would on a 5 minute chart.\u00a0 My reward to risk ratios are usually at least 2:1.
\n
Entry Criteria:\u00a0 Breakout entry above or below the previous periods candlestick.
\n
Entry Price:\u00a0 2-5 pips above or below the high or low of the previous price range.
\n
Stop Loss:\u00a0 2-5 pips on the opposite of the entry high/low
2:1 Reward Risk target:\u00a0 1.09582 ( 2 X range of setup candlestick)
\n
For traders using the ATR indicator, you can simply set your profit target at 1, 2, 3 times the average true range.\u00a0 For this example, 94 pips is the ATR as of the setup candle session.
\n
Advanced Method
\n
One way to take advantage of market volatility and have a higher probability trade is to use other time frames with the daily.
\n
\n
This is a 15 minute chart setup of the same point in time as the previous daily chart.
\n\n
Traders can monitor the breakout , wait for a pullback and then place their entry order above the new swing high.\u00a0 Stop would be placed as the original strategy
\n
This area is more of a key level (the first was more a trading range), and traders may wait for the obvious swing as seen here.
\n
After the daily volatility rips price higher, traders may wish to move their stop under the most recent swing low to take some risk out of the trade
\n\n
PRO TIP:\u00a0 When momentum steps in as we seen here, traders may want to take partial profits or exit their trade at the first sign of decreasing momentum.\u00a0 At the very least, do not take a loss on these types of trades.
\n
You can use the same profit targets as the original method or actively manage your trade.
\n
Make sure that the Forex pair you are trading is actually in a trending environment or is showing some type of directional bias.
\n
\n
Daily High Low Trading Strategy Advantages
\n\n
Easy to understand: This strategy is relatively simple and easy to understand, making it a good option for beginner traders.
\n
Based on a clear trend: The strategy is based on identifying the daily high and low points and trading in the direction of the trend, which can provide a clear direction for traders to follow.
\n
Applicable to different time frames: This strategy can be applied to different time frames, from daily charts to shorter time frames like the hourly or 15-minute charts.
\n\n
What Are The Disadvantages
\n\n
False breakouts: One of the main risks of this strategy is the possibility of false breakouts, where the price breaks through the daily high or low point, but then quickly reverses and moves in the opposite direction.
\n
Limited trading opportunities: Since this strategy relies on trading in the direction of the daily trend, there may be fewer trading opportunities if the trend is not clear or if the market is consolidating.
\n
Limited profit potential: This strategy may not be suitable for traders who are looking for high-profit potential, as the take profit target is usually set at a relatively conservative level.
\n\n
Every trading strategy has its own advantages and disadvantages, and it is up to the trader to determine if the strategy meets their trading goals and risk tolerance.
\n
Traders should always use proper risk management techniques and be aware of the potential risks associated with any trading strategy.
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