Marking prior-session extremes on five-minute charts

[FXS London Scalper]

Yesterday's high and low are among the most watched levels. For scalpers, they're useful but need context.

How they can be used:

• As targets: a move towards yesterday's high often slows or reverses there.
• As breakout levels: a clean break and hold above yesterday's high can start a trend day.
• As stop placement guides: stops just beyond them get hit often, since many traders use them.

Context that matters:

• Distance from the open. If yesterday's high is far away, it may not be reached.
• Yesterday's range. After a very wide day, the levels are less likely to be tested.
• News. A data release can blow through any level.

How to check: over a few months, count how often each level was touched during London, and what happened at the first touch.

Mark them before the session starts rather than during it. Drawing levels while price is moving tends to put them where price happens to be, which makes them less objective.

How do you use yesterday's levels?