Understanding Key Trading Levels

When you're analyzing price action, two metrics matter most: PDH and PDL.

PDH stands for Previous Day High—essentially the peak price reached during the prior trading session. PDL, on the other hand, is the Previous Day Low—the floor price hit that same day.

Why obsess over these numbers? Because traders everywhere treat them as critical reference points. These previous highs and lows act like invisible support and resistance zones in the market. Once price approaches these levels, liquidity often clusters nearby. Breakouts tend to accelerate around these zones, while rejections become predictable.

Think of it this way: if thousands of traders remember yesterday's high, many will watch to see if today's price breaks through it. Some will take profits there, others will jump in. The result? Concentrated activity at those exact price points.

Mapping these levels helps you spot where volume is likely to emerge and anticipate potential friction in the market.