HOD (High of Day) and LOD (Low of Day) are fundamental concepts in technical analysis and intraday trading. They represent the peak and lowest price levels during a trading day.
These levels are crucial for traders as they provide valuable signals about market behavior and price trends.
High of Day (HOD)
This level represents the highest price that an asset (e.g., stocks, cryptocurrencies, or commodities) reaches during a trading day. It often serves as a temporary resistance level.
Traders may consider selling in this region as prices will likely reverse from these heights.
Low of Day (LOD)
The lowest price that an asset records during a trading day is the Low of Day (LOD).
It can act as a temporary support level and often provides buying opportunities, as prices tend to rebound from this point.
Example of High and Low of Day
The Bitcoin (BTC) chart for a trading day shows an opening price of 99,325. The highest price recorded during the session is 99,952, representing the High of Day (HOD).
Conversely, the price dropped to 99,191, indicating the Low of the Day (LOD). The session closed at 95,670.
Conclusion
The Highest of the Day (HOD) and Lowest of the Day (LOD) are useful concepts for identifying temporary resistance and support levels in the market.
By using these levels, strategies such as Break of Structure (BOS) or price reversal can be designed.
However, to effectively use these concepts, it is essential to combine them with other technical analysis tools and risk management strategies
