📈 Key Levels #

• PDH / PDL: Previous Day High / Low
• PWH / PWL: Previous Week High / Low
• PMH / PML: Previous Month High / Low
• DOP / WOP / MOP: Daily, Weekly, Monthly Open

These levels help identify:

• Potential liquidity grabs
• Possible reversal zones
• Key institutional interest levels

🎯 Why are Previous Highs & Lows so important? #

Previous Highs and Lows are often prime targets for Smart Money because:

• They mark “trapped” liquidity zones — many stops are placed just above or below.
• They allow liquidity grabs — quick sweeps to trigger stops before reversing.
• They serve as key technical reference points visible to everyone — and exploited by professionals.
• They are used as psychological and technical anchors in ICT-based setups.

👉 These levels are often the first targets during the start of a session, or in manipulative contexts (Sweep → Shift → Break).

🔍 Real Example

Here’s a Before / After sequence showing how price reacts around Previous Levels.

Before:

After:

💡 Premium & Discount Zones #

One of ICT’s fundamental principles: price positioning relative to the opening level.

• Trading above the Daily/Weekly/Monthly Open = Premium Zone → Favors selling
• Trading below = Discount Zone → Favors buying

These zones help contextualize your trade setups within a broader directional bias.

📌 Why are these levels so often revisited? #

Open levels are not just visual references — they are institutional anchor points. Price frequently returns to them for several reasons:

• Accumulation or distribution: Institutions may build or scale out positions around the DOP/WOP/MOP
• Triggered pending orders: These levels are often used as “reloading zones” for delayed entries
• Trading campaign rebalancing: After a deviation, price returns to the Open to rebalance the average entry
• Liquidity concentration: Many orders (especially stops and limits) are placed around the Open — by both retail and pros

👉 That’s why price often tends to “return” to these levels, either to sweep them, use them as pivots, or trigger key reactions.

Here’s a classic example showing how price retests the Daily Open Level multiple times.

⏱ Classic vs True Day Range #

There are two main schools of thought when it comes to calculating previous levels:

📌 Classic Mode

• Based on the opening time of the Daily candle
• Generally: from 5 PM to 5 PM (New York Time)

🕛 “True Day Range” Mode

• Based on institutional logic: from 00:00 to 00:00 (New York Time)
• Recommended by ICT as it better reflects institutional activity

⚠️ These two methods can produce different levels.

Understanding the difference is crucial to avoid misinterpreting the charts.

🧠 Key Takeaways #

✔️ Previous Highs/Lows and Open Levels are key targets for institutions

✔️ They help anticipate liquidity grabs, pullbacks, or reversals

✔️ Choosing between Classic or True Day Range affects your market interpretation