Previous Day Highs/Lows: Pending Order Strategy
This efficient H1 strategy leverages the structural support and resistance levels formed by the previous day’s trading range. By placing pending orders near these key levels and using the RSI as a filter, traders can catch breakouts or reversals with defined risk parameters.
Strategy Profile
Timeframe
H1
Pairs
Majors (EUR, GBP)
Type
Pending Orders
1. Setup & Orders
Identify the High and Low of the previous day. Place orders 6-7 points inside the channel:
- Buy Limit: Near the previous day’s Low.
- Sell Limit: Near the previous day’s High.
- Filter: RSI (Period 5).
2. Trade Conditions
Buy Execution
Price hits the Buy Limit near the Support (Low). Condition: RSI must be in the Oversold zone (or leaving it) at the moment of activation.
Sell Execution
Price hits the Sell Limit near the Resistance (High). Condition: RSI must be in the Overbought zone (or leaving it) at the moment of activation.
Risk Management
- Stop Loss: 30% of the daily channel width.
- Take Profit: Target the opposite side of the channel (minus 6-7 points).
Trade the Range: Automate your entries at key daily levels and earn cashback.
