How to Use Previous Day High, Low, and Close

Previous day high, low and close give you three reference points before the next session begins. They describe where the prior session reached its extremes and where it finished. Reaching one of those prices does not create an entry by itself.

The January 2026 daily-candle lesson studies two responses around those levels: a break and retest, or a sweep followed by a return inside. The Stoic Range Model supplies the wider context for choosing between them.

Mark the same session every time

PDH is the previous day’s high. PDL is its low. PDC is its close. Their values depend on the session your chart uses.

Futures charts can display the electronic session or regular trading hours. Stock charts can include or exclude extended hours. On a continuously traded market, the data feed’s time zone determines where a daily candle ends.

Choose one definition for your study and record it. Check the settings after holidays, shortened sessions and contract changes. If you compare charts from different feeds, confirm the session boundaries before assuming a level is wrong.

The video gives particular attention to the previous daily close. That reference should not be confused with the close of an arbitrary one-minute candle.

Put yesterday’s levels inside today’s map

Mark the parent range on the context chart, then add the previous session’s high, low and close. Note whether today’s price is inside yesterday’s range, outside it, or approaching one of its extremes.

Nearby levels can reinforce a location, but adding more lines does not supply entry permission. Keep only the references that affect the decision you are studying. If the parent range and yesterday’s range differ, label both so that their targets do not get mixed together.

Study the break-and-retest response

In a bullish example, price breaks above the selected range boundary and returns toward it. The relevant question is whether that boundary holds as support outside the range. The bearish version reverses the direction.

Define the held retest before the session. One brief close beyond a line does not guarantee continuation. If price returns inside and cannot recover the boundary under your rule, the breakout idea has changed.

The break-and-retest guide shows how location and entry fit together. SBS, Fibonacci and 1-2-3/PTB methods are optional execution applications; the daily-level setup does not require combining all of them.

Study the sweep-and-retest response

Price may breach the previous high or low, then return inside. For a sweep setup under the Range Model, look for the retest to hold on the inside of the relevant boundary.

For example, price trades below the prior low, recovers it and later tests that area from above. The sweep alone is incomplete. Your plan still needs the recovery, the retest condition, a permitted entry and clear invalidation.

If price continues holding below the level, do not keep calling it a bullish sweep simply because a reversal would fit the original idea. Record what happened and reassess the environment.

Choose objectives from the range you are trading

For a sweep and held retest inside the selected parent range, the midpoint and opposite boundary are reference objectives. For a break and held retest outside it, one and two range heights provide projected objectives.

The recording also discusses the previous daily high and holding toward the session close. Those are historical management choices, not a promise that every entry should be held all day. Record which exit rule you are testing before entering.

Check the available distance to the objective against the entry-to-invalidation distance and expected costs. If the room is insufficient under your plan, the presence of a familiar daily level does not fix it.

Replay one session at a time

Save yesterday’s three levels before revealing today’s candles. Record the first response, whether the retest held inside or outside, and whether your entry condition appeared. Keep sessions with no qualifying setup in the sample.

Use the daily-candle video for the original chart examples. In your journal, keep the session definition, parent range and entry version beside each screenshot so the next review uses the same rules.

Stoic Edge provides education. Historical examples and practice exercises do not establish future performance.