Definition of 'Low'
What is important about the low?
- Traders look at the low in a trading session as a support area in the following trading session if the price opens at or above the low.
- Traders will also look at the overnight low to determine a possible floor for the current day's trading session.
- The low price is an unequivocal pivot point. (Pivot points are prices at which traders look for support and resistance. Their effectiveness is argued subjectively as the success of that pivot point will depend on where a trader may have entered and exited a trade. The low price, on the other hand has zero (or close to zero) draw down if a trader enters a counter trend trade at that price.
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