PDH & PDL Indicator: Previous Day's High/Low with Alerts

The PDH & PDL indicator tool plots the high and low of the previous trading day directly on your chart to provide essential visual references for breakout and trend exhaustion levels.

Usage

The indicator provides two primary levels that serve as horizontal support and resistance based on the prior day's price action. Traders typically use these levels in the following ways:

• Breakout Identification: When the price breaks above the Previous Day High (PDH), it may signal bullish momentum. Conversely, a break below the Previous Day Low (PDL) can indicate bearish sentiment.
• Trend Strength: Monitoring price action relative to these levels helps gauge whether the current session is showing strength (trading above PDH) or weakness (trading below PDL).
• Reversal Points: These levels often act as "magnets" or areas where price might stall or reverse, making them useful for setting profit targets or stop-loss orders.

Details

The script utilizes the request.security function to fetch daily data (high and low) from the previous session. By using a "D" (Daily) timeframe request, the indicator remains consistent across various intraday timeframes (1m, 5m, 15m, 1h, etc.). The script includes built-in alert conditions that trigger when price crosses these historical thresholds, facilitating real-time monitoring without needing to constantly watch the chart.

Settings

• Previous Day High: Controls the visual style and color (default green) of the PDH line.
• Previous Day Low: Controls the visual style and color (default red) of the PDL line.
• Alerts: Users can configure alerts for:
  • Crossed Above PDH: Triggers when the closing price moves above the previous high.
  • Crossed Below PDL: Triggers when the closing price moves below the previous low.
  • Any Alert: A combined alert for any interaction with either level.

FAQ

How do I use the PDH & PDL indicator for day trading? Day traders use these levels as high-probability zones for entries. A successful retest of the PDH as support often leads to a continuation of a bullish trend, while failing to break the PDL may suggest a price bounce.

Does this indicator work on crypto and forex? Yes, the script works on any symbol available on the platform, including stocks, forex, and cryptocurrencies, as it relies on standard daily candle data.

How can I access this indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.