Previous day high and low as targets
Posted: Sat Oct 31, 2026 6:46 pm
Previous day high and low as targets
The prior day's high and low are among the most-watched levels. Price often reacts there, and many traders use them as targets.
The reaction has a logic. Orders cluster around those levels: take-profits from traders who bought earlier, stops from those who sold. When price arrives, liquidity is available.
For scalpers, the levels serve as magnets and as obstacles. Heading toward a prior high, price often accelerates into it, as stops above get triggered, and then reverses. A target set just inside the level has a decent chance of being hit. One set beyond it has less.
The daily boundary is feed-dependent. The "day" ends at the broker's cut, so the high and low vary by platform. Using a consistent source helps.
Testing the reaction distribution on past data shows how often price touches, stalls, or passes the levels, and by how much.
Relative to the previous day's extreme, where does price tend to stall on the pairs traded?
The prior day's high and low are among the most-watched levels. Price often reacts there, and many traders use them as targets.
The reaction has a logic. Orders cluster around those levels: take-profits from traders who bought earlier, stops from those who sold. When price arrives, liquidity is available.
For scalpers, the levels serve as magnets and as obstacles. Heading toward a prior high, price often accelerates into it, as stops above get triggered, and then reverses. A target set just inside the level has a decent chance of being hit. One set beyond it has less.
The daily boundary is feed-dependent. The "day" ends at the broker's cut, so the high and low vary by platform. Using a consistent source helps.
Testing the reaction distribution on past data shows how often price touches, stalls, or passes the levels, and by how much.
Relative to the previous day's extreme, where does price tend to stall on the pairs traded?