Previous Week High and Low, The Weekly Liquidity Map

[Fairman]

Previous Week High and Low, The Weekly Liquidity Map

Day traders often live inside daily charts and forget that the weekly chart holds the biggest liquidity pools. The previous week's high and low are two of the most significant levels you can mark.

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Why they carry weight: more orders, from more traders and more timeframes, sit near these levels than near most intraday highs and lows.

How price tends to interact with them:

- During the week, price often travels toward one of them
- A sweep of the previous week's high or low can mark the start of a reversal
- A clean break and hold can show that the trend is continuing

A practical routine:

1. On Sunday or early Monday, mark the previous week's high (PWH) and low (PWL).
2. Note whether the weekly candle closed bullish or bearish and where it closed within its range.
3. Decide which level is more likely to be targeted, based on structure.
4. Combine it with daily levels for entries during the week.
5. Use the weekly levels as targets for your longer holds.

Example thinking: the previous week closed near its high, and structure is bullish. You might expect price to dip into discount early in the week, then aim toward or beyond the PWH.

Warning: weekly levels aren't magic. News and context can override them.

Mark them for four consecutive weeks and note what happened. Pattern awareness grows from observation.

[LondonNewsTrader]

Step 1 pairs well with a look at the week's calendar, done at the same time as marking the levels. The previous week's high or low is often taken on the biggest release of the week rather than in ordinary session flow, and whether that sweep holds tends to depend on the number. A sweep of PWL on a weak payrolls print that closes back inside the range by the end of the day is a very different signal from one on a quiet Tuesday with no catalyst at all.

[FXS Prop Desk]

The previous week's levels are some of the most watched on the chart. A useful statistic to collect: over the last six months, how often did each week take out the previous week's high, low, both, or neither, and on which day did it happen?

On major pairs one of the two is taken out in most weeks, and "both" is less common. Knowing those proportions for your own pair helps set expectations: if Tuesday has already run the previous week's high, the chance of also taking the low later in the week can be estimated rather than guessed.

[Shadow Trader]

The count FXS Prop Desk suggests is worth doing, and laying it out as a simple tally makes the weekly map much easier to use. Most weeks take one side of the previous range, and the more interesting question is how often they take both.

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The chart uses round numbers for 26 weeks of EURUSD rather than my exact log. Ten weeks took only the previous high, nine only the low, four took both and three took neither, and Tuesday was the most common day for the first break.

The useful part is the conditional read. Once the first side has been run, only four of the 23 weeks with a break went on to take the other side as well, so a midweek trade aimed at the opposite level is the exception rather than the plan.

On the release point above, I tag each break by whether it happened within an hour of a high impact number. The breaks that came on data were the ones most likely to close back inside the old range by the end of the day.

How far beyond the level do you need price to trade before it counts as taken? I use 3 pips on EURUSD, because a 1 pip poke happens all the time and inflates the both column.