Sometimes the opening price of the day is above the high of the previous day, or below the low of the previous day, or the high and low of the previous day are the recent highs and lows. In this case, we should take the highs and lows of the previous day as reference points for resistance and support. When the opening price of the day is high and the price falls to near the previous day's high after several pushes upwards, we can use the previous day's high as a support level to enter a long position. Since it's difficult to mark which high point is the previous day's high on the K-line chart, I will explain using the intraday chart, allowing everyone to see the position of the previous day's highest point more intuitively.
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Investors often ask questions like this:
When analyzing trends, should the current day's market be analyzed together with the previous day's market? When counting waves in wave theory, should the previous day's market be included in the count? In fact, normal market trends fluctuate throughout the day. We must understand that the market is continuous, so when analyzing the market, we must connect the trends of the last few days for analysis.
