Newbie question

[Iqbal]

Can anyone tell me the significance of the previous day high and low in forex, and how i can use this in trading.

Thankyou.

 

[Jetheat]

They can be thought of as support and resistance levels. Use them as you would any other S/R level.

Some people trade the breakout from these levels.

JH

 

[FetteredChinos]

they ARE support and resistance levels.

 

[Roberto]

They are PREVIOUS support and resistance levels.

 

[neil]

What is a day for the purpose of calculating previous days high/low in the forex arena?

 

[Straybow]

they ARE support and resistance levels.

They are PREVIOUS support and resistance levels.

Not a given, by any means. Prev day high, on an uptrend, may well be insignificant if you are already above it. Likewise prev day low on a downtrend.

 

[FetteredChinos]

yes, a given.

the fact they were highs/lows implies the price hit a level and reversed from it.

isnt that a basic definition of support and resistance?


as you say, if we are already above yesterdays high, we may well have a case of previous resistance becoming support etc.

 

[pips_lady]

They can be thought of as support and resistance levels. Use them as you would any other S/R level.

high and low - upretend and downtrend - resistance and support.. When the market moves up and then pulls back, the highest point reached before it pulled back is now resistance. As the market continues up again, the lowest point reached before it started back is now support.

 

[fibonelli]

The previous days high and low are used as pivot points and fibonacci number derived pivot points.

Using Pivot Points for Predictions
re Pivot Points

Pfatdaddys Website
re Fibonacci Pivot Points