Trading off of the Previous High & Low

Does anyone trade based off the previous days high and low? I know there is the SRDC version, but I wanted to get some input as to anyone else who may be trading like this, as far as what you make your stop losses at, do you place 2 trades at the same time a buy and sell and run with whichever gets hit first? When to exit your trade?

I would love to hear anyone's feedback in regards to this post.

Thanks..

Marc

Did you check the forum for Box Trading?

Lou

Can't seem to located anything..can you please expand?

Also, has anyone had any success trading this way?

i'm newbies here....sorry










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The previous days high or low can provide support and resistance to trade off, however you need to take other things into consideration to understand the importance that these levels may have on a given day.

For example if the previous days high is a new high for the medium term, there is probably a greater chance it will hold, at least temporarily, if it happens to correspond to an important fibonacci level from the longer term charts, then that confluence may add more importance to that level as well.

These levels however can be sought out as there are quite often pending orders and stops sitting just above/below these levels, and so it is not uncommon to see a spike through these levels before reversing, have a look at Fridays EURJPY chart for an example of this scenario.

Anyhow, the point of it all is that if you trade just off support and resistance, whether that be daily highs and lows, tops or bottoms, or high volume areas, you will do a lot better than most with spaghetti charts. Throw some candlestick reading in there and you just may be on a winner. Best of luck!