Previous 30 Days Highs and Lows

20 godzin temu

The concept of using the previous 30 days' highs and lows as strong support and resistance levels—or demand and supply zones—relies on market psychology and historical price action. Here's a brief explanation:

- Support and Resistance:
- The high of the previous 30 days often acts as a resistance level, where selling pressure tends to increase as prices approach it. This is because traders who bought at or near that high may look to sell to break even or profit, creating a ceiling.
- The low of the previous 30 days often acts as a support level, where buying interest tends to emerge. Traders who missed the low may see it as a bargain, or those who sold may buy back, forming a floor.

- Demand and Supply Zones:
- These highs and lows can be considered supply zones (near the high) where sellers historically dominated, indicating a potential area of supply if price returns.
- They can also be demand zones (near the low) where buyers historically stepped in, suggesting a potential area of demand if price revisits.

- Why They Work:
- Over 30 days, these levels reflect significant price points where the market has shown a reaction, embedding them in traders' memory.
- They act as psychological benchmarks, influencing future price behavior as market participants react to these "tested" levels.
- The longer these levels hold (e.g., after multiple tests), the stronger they become due to increased market awareness.

- Practical Use:
- Traders use these levels to set entry points (e.g., buying near support, selling near resistance), place stop-losses, or anticipate reversals/breakouts.
- A break above the 30-day high or below the 30-day low can signal a strong trend, as it indicates a shift in supply/demand dynamics.

This approach is effective because it leverages historical data to predict future price reactions, though its strength depends on market conditions, volume, and the timeframe's relevance to your trading strategy.

Apply the Indicator:
1. Go To indicator on TradingView’
2. search previous 30 days high and lows
2. Click “Add to Chart” to apply it.
The indicator will now work on any timeframe (e.g., 1H, 15m, 1D) while using daily data for calculations.

Verify Output:
You should see up to 60 dashed lines (30 red for daily highs, 30 green for daily lows) representing the high and low of each of the previous 30 days.
Labels will appear when the price crosses above a day’s high or below a day’s low, indicating which day’s level was crossed (e.g., “Day 1 High” for the most recent previous day).

20 godzin temu

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