Trading Bias Made Simple:
Previous Day & Week Highs/Lows
Some of the cleanest levels for gauging market bias aren’t complex indicators - they’re just the previous day’s and week’s highs and lows
Price reacts to them every time; the question is how.
Here’s the framework:
➡️ Close beyond PDH/PWH → Continuation likely. Next target? New highs.
➡️ Fails to close beyond → Expect a reversal back inside the range, often toward the opposite side.
➡️ Inside day → No break, just balance. Prepares the market for the next move.
➡️ Closes back inside after a break → Early sign of reversal, liquidity shifting inward.
Pro tip: Don’t trade these levels in isolation. Use them to frame the bigger narrative, spot structural shifts, and anticipate key moves.
Simple. Clean. Surprisingly powerful