Trading using yesterday high and low Prior day
One common trading strategy is to use yesterday's high and low as levels of support and resistance. If the price is approaching yesterday's high, it may be seen as a resistance level, and traders may look for sell signals or consider taking profits. Similarly, if the price is approaching yesterday's low, it may be seen as a support level, and traders may look for buy signals or consider entering the market.
Here are a few tips for using yesterday's high and low in your trading:
Use them as reference points, not as hard rules. Just because the price reaches yesterday's high or low does not mean it will automatically reverse. Look for other confirming signals, such as chart patterns or technical indicators, before making a trade.
Keep an eye on the overall trend. If the trend is up, yesterday's low may be more likely to hold as support, while yesterday's high may be more likely to act as resistance. Conversely, if the trend is down, yesterday's high may be more likely to act as resistance, while yesterday's low may be more likely to hold as support.
Be aware of news and events that may affect the market. If there is a major news release or economic event, it may cause the price to break through yesterday's high or low, invalidating them as levels of support or resistance.
Use other time frames to confirm your analysis. If you are using a daily chart, for example, you may want to look at shorter-term charts, such as 4-hour or 1-hour charts, to see if yesterday's high and low are still relevant.
I hope these tips are helpful! Let me know if you have any other questions.
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