PDH: Previous Day High and Low
Also known as: PDH, PDL, previous day high, previous day low, yesterday's high and low
What is it?
The previous day high and low are yesterday's extreme prices, and they matter because they are the two levels almost every intraday trader can see - which is exactly what makes them pools of resting orders. Stops cluster just beyond them. Anyone who sold near yesterday's high has protective buy stops above it; anyone long from yesterday's low has sell stops below it.
Breakout traders add entry stops on the same side. The result is a dense band of orders a few pips past each extreme, which is why price so often trades just through one of them and then reverses - the move existed to reach the orders, not to continue. If GBP/USD set yesterday's high at 1.2712, a run to 1.2718 that closes back at 1.2694 is a textbook sweep of that pool.
The distinction worth holding is between a raid and a break. A raid pierces the level briefly and returns; a break trades through and accepts the new price for several bars. Both start identically, which is why traders wait for the close rather than acting on the first tick beyond yesterday's extreme.
Why it matters: Yesterday's high and low are the levels most intraday traders watch, so stop orders pile up just beyond them and price is often drawn there first.
These are the most commonly targeted intraday liquidity levels, so they shape where stops get hit and where the day's move is likely to begin.
Real-world example
GBP/USD ran 6 pips through the previous day high at 1.2712 to 1.2718, then closed the hour back at 1.2694 and sold off to 1.2641 - the break was a sweep, not a continuation.
How SignalBots handles it
SignalBots publishes each signal with its entry level attached, so you can check whether it sits on the near or far side of yesterday's extremes before acting. See /risk-warning.
Pro tip
Mark both levels before the London open and leave them there all day - the value is in having them drawn before price gets near them, not after.
Common pitfalls
Buying the first tick above yesterday's high. That is precisely where the resting stops sit, and it is the most common place for a move to end rather than begin.
Frequently asked questions
Which day boundary defines 'previous day'?
Whichever you use consistently. ICT traders usually take midnight New York to midnight New York, which differs from the broker's daily candle. The levels shift by a few pips between conventions, so pick one and stay with it.
How do I tell a sweep from a genuine breakout?
By acceptance. A sweep pierces the level and returns inside within a bar or two; a breakout trades through and holds the new price for several bars. Waiting for a close beyond the level filters most sweeps.
Are these levels useful outside forex?
Yes. Index futures, gold and large-cap stocks all show the same clustering of orders around the prior session's extremes, because the same breakout and stop-placement habits apply.
Do they matter more on some days?
They tend to matter most on quiet days when the previous range is intact. After a large trending day, price often opens far from both levels and they carry less influence until it returns.
Can I place a stop just beyond yesterday's high?
You can, but it sits inside the busiest band on the chart, so it is a common place to be stopped out on a move that then reverses. Placing it beyond the sweep zone costs more room but survives more raids, and capital is at risk either way.
Trading involves substantial risk of loss. Historical and backtested results do not guarantee future performance. Read the full risk warning.
