What it is
Yesterday's high and low are some of the most watched levels in day trading. They mark where buyers and sellers stopped yesterday, so today's first tests of them show whether that balance still holds.
The indicator has no settings to tune: it finds the previous trading day (which rolls over at 5pm New York time) and draws its high and low, even on a fast chart that only shows a few hours. If less than two days of candles are loaded, it says so rather than drawing a wrong level.
How it is calculated
Find the last complete trading day before today. PDH is the highest high of all candles in that day; PDL is the lowest low. Both lines are drawn across today's candles.
How to read it
How to trade it
- 1
Breakout and retest on a 5 minute US30 chart: wait for a close above PDH, then a pullback that holds above it. Enter on the candle that closes back up off PDH.
- 2
Stop below PDH and below the retest low, often 20 to 40 points on US30 at 5 minutes.
- 3
Target 2 times the stop, or the next key level such as a pivot R1 or a round number.
- 4
Sweep reversal on gold: when price spikes above PDH and the 5 or 15 minute candle closes back below it, sell on that close with the stop above the spike high. Target the middle of yesterday's range.
A breakout long is wrong once price closes back inside yesterday's range below PDH. A sweep short is wrong once price closes above the spike high.
On WickSpeak, previous day high and low write a plain-English reading on the live candle: where price is against yesterday's range, how many points to each line, how to trade it and what would prove it wrong. They are also part of WickSpeak's key levels, alongside the previous week and month high and low, each with how many points away it is.
Best markets and timeframes
An intraday level for gold, US30, NAS100 and forex on 1 to 15 minute charts. On 1 hour and above, the previous week high and low play the same role.
Common mistakes
- Buying the first wick above PDH before the candle closes.
- Placing the stop exactly on the line, where sweeps commonly reach.
- Ignoring how far price already travelled today; if the day's range is already used up, breakouts often stall.
Works well with
Questions traders ask
Why is the previous day high important?
Many traders place stops and breakout orders just above it, so it collects orders. Price reacting there shows whether buyers can extend yesterday's move or not.
What is a PDH sweep?
Price trades above the previous day high, triggers the orders resting there, then closes back below it. It suggests the push lacked follow through and often leads to a move back into the range.
When does the previous day start and end?
On WickSpeak the trading day rolls over at 5pm New York time, the usual convention for forex and CFD markets. The previous day high and low come from the last complete trading day before the one on screen.
Is PDH and PDL good for gold?
Gold often reacts at yesterday's high and low around the London and New York opens. Wait for a close to tell a breakout from a sweep.