Previous Day High/Low

Look at yesterday's candle on a daily chart. The wick high is PDH, the wick low is PDL. Most platforms can auto-plot these levels. Simply mark them on your intraday chart each morning.

No. PDH and PDL are fixed levels from yesterday's session. They remain the same all day today. Tomorrow you'll have new PDH/PDL based on today's high and low.

In ranging markets, bounces work well (fade at PDH/PDL). In trending markets, breakouts work better. Start with bounces as they're easier to learn. Add breakouts as you gain experience.

A gap through changes the level's role. Gap above PDH = PDH becomes support. Gap below PDL = PDL becomes resistance. Trade accordingly - don't fight the gap.

PDC is Previous Day Close - yesterday's closing price. It acts as a midpoint reference between PDH and PDL. PDC is often used as a target for bounce trades and a reference for gaps.

PDR = PDH - PDL, measuring yesterday's volatility. Narrow PDR suggests expansion ahead. Wide PDR suggests possible consolidation. PDR also helps set measured move targets (e.g., target = PDH + PDR for breakout).

Multi-day levels (2-day, 5-day, 20-day) are stronger than single-day PDH/PDL. Use them for swing trades or when PDH/PDL coincides with multi-day levels (confluence).

An Inside Day is when today's entire range is within yesterday's range (today's high < PDH AND today's low > PDL). This compression often precedes a breakout of either PDH or PDL.

Gap above PDH = Very bullish, PDH becomes support. Gap below PDL = Very bearish, PDL becomes resistance. Gap inside range = Trade toward the gap direction. Gaps through levels change their role.

Use wider stops in volatile markets (high VIX), on volatile stocks, or when PDR is wide. Standard 0.2% buffer may be too tight. Consider 0.5% or stop beyond recent swing.

When price breaks PDH but quickly returns below, it traps longs. Short on return below PDH with stop above the failed breakout high. Target PDC or PDL. Same logic applies for failed PDL breakdowns.

Outside Day is when today exceeds both PDH and PDL (higher high AND lower low). High volatility day. The direction of the close often indicates next day's bias - trade with close direction.

Morning tests (first 2 hours) often bounce as traders respect levels. Afternoon tests may break through as conviction builds. Late day (last hour) breaks can be false. Adjust expectations by time.

Buy calls at PDL bounce, puts at PDH rejection. For range-bound expectation, sell iron condor with short strikes at PDH/PDL. Credit spreads: Bull put at PDL, bear call at PDH.

PDH/PDL + Pivot Points = Strong if aligned. PDH/PDL + VWAP = Institutional confluence. PDH/PDL + Fibonacci = Technical confluence. PDH/PDL + ORB = PDH/PDL often near OR levels.