Not every Previous Day High (PDH) or Previous Day Low (PDL) is an important support or resistance level.
One of the biggest mistakes traders make is assuming that every PDH and PDL will work as support or resistance. They don't.
The real question is:
How do you identify which PDH/PDL is powerful and which isn't?
Take Nifty on 6th August (Yesterday) as an example.
Price initially broke above the Previous Day High, giving the impression of a strong breakout. But instead of continuing higher, it quickly reversed and started falling.
Why did the breakout fail?
August 7, 2026 3.7K 5
