Previous Day High & Low Model
Mark yesterday's high and low. When price takes one out and then shows an MSS reversal inside a kill zone, you enter at a PDRA on M5 and target the opposite previous-day extreme. If there is no MSS, it is a continuation and the model does not apply.
This model uses the previous day's high and low as your reference for entries. When price takes out one of them and reverses, you have a clean, repeatable trade toward the other side. It is a sibling of the Asian Session model, just anchored to the previous day instead of the Asian range.
- Entries on M5. Your higher timeframes are the 1-hour and the daily.
- Entries inside the London or New York kill zone. For AUD, NZD, and JPY pairs, the Asian kill zone is also fine.
- Use any PDRA for entry: an FVG, an inversion FVG, a breaker, or a combination. The 50% Fibonacci adds confluence.
A reversal from the previous day low
Mark the previous day high and low. Price trades down and sweeps the previous day low, taking the liquidity below it. This model only works if a reversal follows.
Spot it: A poke below the previous day low = the sweep.
No MSS? It is a continuation, not a trade
Sometimes price takes out the previous day low and just keeps falling. With no MSS reversal, the model does not apply. Do not enter, you would be trading into a continuation. Wait for the MSS, or skip the trade.
Price reaches and sweeps the previous day low, just like before.
Spot it: Same start: the previous day low is taken.
Enter only in the kill zone
The strategy is useless if you enter at the wrong time. Even if the STH-ITH-STH pattern forms early, do not enter until you are inside the kill zone (London or New York; Asian for AUD/NZD/JPY). Outside the kill zone, price often just keeps drifting and the PDRAs are not respected.
Structure and stops
After the MSS, wait for the short-term high, intermediate-term high, short-term high (or the low version) to form, then enter on the pattern. Place the stop beyond the protected intermediate-term high or low.
The bearish version
It is the mirror. When price takes out the previous day high, wait for an MSS down (a break of the latest pullback from the highest high), then enter at an FVG, breaker, or the 50%, and target the previous day low. The stop sits above the protected high.
Trading is a game of probability
No strategy wins 100% of the time. Some trades lose, even after an MSS, and that is normal. Your job is to follow the rules and target correctly. When you respect the rules, the losses are easier on your psychology, and over time, consistency comes from sticking to one model instead of jumping between strategies.
How pros apply it
- M5 example: the previous day high and low were marked. After a sweep, the entry waited for the kill zone, even though the pattern formed earlier, then ran to the previous day low.
- GBPUSD (M5): after the high was taken, an MSS down confirmed, and the entry was the 50% Fibonacci, with a breaker and an FVG as PDRAs, targeting the previous day low.
- A bullish previous-day-low reversal: after the MSS up and the STL-ITL-STL, the entry was an anticipation in the kill zone, targeting the previous day high, with the stop at the protected intermediate-term low.
Key takeaways
Mark the previous day high and low. When one is taken out AND an MSS reverses inside a kill zone, enter at a PDRA on M5 (FVG, inversion, breaker, or 50%), stop beyond the protected level, and target the opposite extreme. No MSS means continuation, so stand aside. Follow the rules, it is a game of probability.
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