Daily High/Low Levels Guide

Daily High/Low Levels are essential reference points that help traders anticipate price movements, set targets, and manage risk effectively. RelicusRoad Pro’s implementation goes beyond simple daily extremes to provide intelligent, actionable levels.

Understanding Daily Levels

What Makes Them Special

Our Daily Levels system:

• Calculates levels before market open
• Adjusts for timezone and session
• Includes Fibonacci extensions
• Provides statistical probabilities
• Updates dynamically

Visual Components

Orange Line (Daily Low)

• Previous day’s low point
• Potential support level
• Bounce probability zone
• Break down target

Green Line (Daily High)

• Previous day’s high point
• Potential resistance level
• Rejection probability zone
• Breakout target

50% Line (Midpoint)

• Daily range midpoint
• Neutral decision zone
• Trend bias indicator
• Range trading pivot

How Daily Levels Work

Level Calculation

Daily High/Low Levels are automatically calculated from the previous 24-hour period to provide:

• Daily High: Previous day’s highest price
• Daily Low: Previous day’s lowest price
• Midpoint: 50% level between high and low
• Extensions: Fibonacci projections beyond the range for breakout targets

Statistical Probabilities

Based on historical data:

• Price touches previous high/low: 73%
• Price breaks and retests: 42%
• Price reverses at level: 58%
• Range expansion beyond: 27%

Trading Strategies

Strategy 1: Level Touch Trading

Morning Setup:

1. Note overnight price position
2. Identify nearest daily level
3. Wait for approach
4. Trade the reaction

Execution Rules:

• First touch highest probability
• Require confirmation candle
• Stop beyond level
• Target opposite level

Example:

GBP/USD opens at 1.2650
Daily Low at 1.2620 (Orange)
Daily High at 1.2700 (Green)

Scenario 1: Price drops to 1.2620
- Look for bounce signals
- Buy at 1.2625
- Stop at 1.2610
- Target 1.2660 (midpoint)

Scenario 2: Price rises to 1.2700
- Look for rejection
- Sell at 1.2695
- Stop at 1.2710
- Target 1.2660 (midpoint)

Strategy 2: Breakout Trading

Breakout Confirmation:

1. Price closes beyond level
2. Volume increases
3. Momentum accelerates
4. Retest holds

Fibonacci Extensions: When daily level breaks:

• Target 1: 127.2% extension
• Target 2: 161.8% extension
• Target 3: 200% extension

Risk Management:

• Stop at broken level
• Trail at extensions
• Partial profits mandatory
• Monitor momentum

Strategy 3: Range Trading

50% Midpoint Strategy:

• Price above 50%: Bullish bias
• Price below 50%: Bearish bias
• At 50%: Neutral, wait for direction

Trading the Range:

1. Buy at daily low
2. Sell at daily high
3. Use midpoint for partials
4. Reverse at extremes

Session-Based Applications

London Session

Characteristics:

• Often sets daily high/low
• Strong directional moves
• Respect for levels high
• Best breakout potential

Trading Approach:

• Wait 30 minutes after open
• Trade first level test
• Expect range expansion
• Hold for NY session

New York Session

Characteristics:

• Tests London extremes
• Potential new high/low
• Volatile reactions
• News-driven breaks

Trading Approach:

• Fade London extremes
• Trade breakout continuations
• Tighter risk management
• Quick profit taking

Asian Session

Characteristics:

• Respects previous levels
• Limited range expansion
• Mean reversion tendency
• Consolidation patterns

Trading Approach:

• Range trade between levels
• Smaller position sizes
• Expect failed breakouts
• Focus on major pairs

Advanced Techniques

Multi-Day Analysis

3-Day Level System:

• Today’s levels (primary)
• Yesterday’s levels (secondary)
• 2 days ago (reference)

Trading Applications:

• Confluence zones strongest
• Untested levels magnetic
• Multiple touches weaken
• Fresh levels preferred

Level Clustering

When Levels Align:

• Daily + Weekly high/low
• Daily + Monthly levels
• Daily + Round numbers
• Maximum reaction probability

Trading Clusters:

1. Mark cluster zone
2. Increase position size
3. Wider stop required
4. Larger profit potential

Dynamic Adjustments

Intraday Updates:

• New high/low during session
• Levels adjust in real-time
• Fibonacci extensions update
• Maintain original levels too

Integration Strategies

With Other Indicators

Daily Levels + Liquidity:

Daily High alignment with Red Liquidity Level
= Major resistance zone
= High probability short

Daily Levels + Action Levels:

Daily Low with Blue Action Level cluster
= Strong support zone
= High probability long

Daily Levels + S/R Zones:

Daily level within major S/R zone
= Confirmed importance
= Higher reliability

News Trading

Pre-News Positioning:

1. Note daily level proximity
2. Expect test during news
3. Set orders at levels
4. Wide stops essential

Post-News Trading:

1. Check level integrity
2. Trade failed breaks
3. Follow new momentum
4. Adjust targets

Practical Examples

Scenario Analysis

Bullish Day Example:

Open: Above yesterday's high
Action: Look for pullback to high
Entry: Buy the retest
Target: 127.2% extension
Result: Trend day up

Bearish Day Example:

Open: Below yesterday's low
Action: Wait for retest of low
Entry: Sell the failed retest
Target: 127.2% extension down
Result: Trend day down

Range Day Example:

Open: Middle of yesterday's range
Action: Trade between levels
Entry: Buy low, sell high
Target: Opposite extreme
Result: Profitable ranging

Risk Management

Stop Loss Placement

Conservative Approach:

• 10-15 pips beyond level
• Accounts for false breaks
• Lower win rate
• Better risk:reward

Aggressive Approach:

• 5-7 pips beyond level
• Tighter risk control
• Higher win rate
• Worse risk:reward

Position Sizing

Level-Based Calculation:

1. Distance to daily level
2. Determine pip risk
3. Apply 1% rule
4. Calculate position size
5. Adjust for volatility

Performance Optimization

Best Practices

Do’s:

• ✅ Wait for first test
• ✅ Confirm with price action
• ✅ Respect session timing
• ✅ Use multiple timeframes
• ✅ Track statistics

Don’ts:

• ❌ Chase missed levels
• ❌ Trade every touch
• ❌ Ignore failures
• ❌ Use fixed stops
• ❌ Fight the trend

Statistical Tracking

Track your results:

• Touch success rate
• Breakout success rate
• Average R:R achieved
• Best performing sessions
• Optimal hold times

Common Mistakes

Technical Errors

❌ Using Wrong Timezone

• Ensure correct daily calculation
• Match broker server time
• Adjust for DST changes

❌ Ignoring Context

• Consider overall trend
• Check higher timeframes
• Respect major S/R

❌ Over-Trading Levels

• Not every touch tradeable
• Require quality setups
• Maintain selectivity

Psychological Pitfalls

• Fear of missing levels
• Revenge trading breaks
• Holding beyond targets
• Ignoring stop losses

FAQ

Q: When do daily levels reset? A: At midnight broker server time, typically GMT or EST.

Q: Are weekend levels valid? A: Yes, but with lower reliability. Adjust expectations.

Q: Which pairs work best? A: Major pairs and Gold show highest respect for levels.

Q: How long are levels valid? A: Primary validity for 24 hours, but can remain important for days if untested.

Q: Should I trade the first touch? A: Generally yes, first touches have highest reaction probability (73%).

Continue to Trading Arrows or review Strategy Guides.