Previous days High and Low

Discussion in 'Technical Analysis' started by CoralReef, Mar 14, 2009.

  1. I've never used or paid much attention to these levels but I may throw these lines up on my screen.

    I guess it makes sense that they would be natural points of s/r where you would get interesting price action.

    It certainly makes more sense than pivot points based on stupid formula.

    Just wanted to get some thoughts on how others use prev days H/L. I realize its one of those subjects thats as old as trading itself.
  2. this "stupid formula" is based on your greatly appreciated
    last bars high's and last bar low's
  3. I don't want to debate pivot points but High and low are just 2 points on a chart that fundamentally make sense to be points of s/r. PP's are using an arbitrary formula that are throwing up lines all over the place.
  4. speres


    Previous days highs and lows are certainly levels to be aware of, but support and resistance is only support and resistance until it is'nt if you catch my drift. :)
  5. Really it depends on your methods/time frame/instrument.

    At the very least, like flying while blind, the previous sessions 3:00 est (New York) position.

    I use different formulas for different reasons but it sometimes helps to map-out the next session before trading.

    I'll plan the trades and put in my orders at my prices.
  6. Place order 10 percent above and below yesterday high and low
    A stop lose of 20 percent of the range a profit target of 40 - 0r if hit before 1100 NY time--60
    Keep size a constant percentage of capital allotted for this

    In a market like the es you almost always know your fill
    So you know your risk and a backtest can be trusted

    Probable outcome
    90 percent

    Continue losing as a trader
    9 percent
    After many years of losing you finally get it
    And realize shit all I had to do was that simple system- or for that matter any of the public available SIMPLE systems that work

    1 percent
    backtest, gain confidence and make a living.
  7. Lucrum


    I watch previous days high, low midpoint and today's RTH open. Along with the most recent swing high or low.