What does daily level mean?

[[email protected] 2]

Guys,

 

Another silly questions. What does "daily level" mean ? What is the significance of it ?

Why previous day close is often used as support indicator ? Why not previous day's lowest ?

 

Thanks 

[Justin 264]

Hey @[email protected] I just split your comment into new post, as it wasn't quite relevant to the stop loss post. Feel free to search for a relevant topic to ask additional questions or create a new topic!

Anyway, it just means going back in time on a chart and looking at bars that have closed or opened at similar prices (levels). You can see in the AMZN daily chart I posted below that 2168 and 1861 are good daily levels, as prices have been resisted and supported at those points.

Someone may be able to dig into this one a bit more, but previous day close may not have any real reason why it's significant. Other than the fact that it's an easy point of reference, and people pay attention to it. It's like moving averages, they are significant because people use them.

Previous day low is definitely a significant level too. I have it charted all the time.