Previous day high and low in gold trading
The previous day high and low (PDH and PDL) are the extremes of yesterday's gold range, key intraday levels where liquidity rests and sweeps happen.
Also called PDH, PDL, Yesterday's high and low, Prior day range
The previous day high (PDH) and previous day low (PDL) are the highest and lowest prices of the prior trading day. Along with the previous day’s close and the current day’s open, they are among the most widely watched intraday reference levels.
How it applies to gold trading
Stops from yesterday’s traders sit just beyond PDH and PDL, which makes them liquidity targets. Gold frequently runs one of them during London or the New York open and then either breaks out with follow-through or snaps back into the range. Both outcomes give setups: a breakout and retest, or a sweep and reversal.
The definition of a “day” matters. Most gold traders use the 5 p.m. New York close; platforms set to a different server time will show different highs and lows.
Worked example
Example (hypothetical numbers): yesterday’s range was 3,982 to 4,028. In London gold pushes to 4,031, three dollars above PDH, then closes back below 4,028 on the 15-minute chart. A trader sells at 4,026 with a stop at 4,036 and targets the middle of yesterday’s range at 4,005, $10 risk for $21.
A common mistake
Assuming PDH and PDL always reverse price. On trend days, gold breaks them and keeps going.
See also: Liquidity sweep, Breakout, Asian range, Camarilla pivots.
Frequently asked questions
Why is the previous day high important in gold?
Stops and breakout orders cluster beyond it, so price often reacts there, either breaking through with momentum or sweeping it and reversing.
Which time zone should I use for the previous day?
Most traders use the 5 p.m. New York close. Check whether your platform’s daily candles match it.
How do I tell a breakout from a sweep at PDH?
Watch the close. A sweep closes back inside yesterday’s range; a breakout holds outside it and often retests.