Yesterday's Levels with 50% wick and Equilibrium

How it works

The script analyzes the previous day's daily candle and generates horizontal lines representing critical price levels. It draws white lines for the previous day's high, low, open, and close prices, creating a visual map of the prior day's price action.

Additionally, the script calculates and marks two green dotted lines representing 50% of the candle's top and bottom wicks. A distinctive red line is placed at the midpoint or equilibrium of the entire candle, offering traders a comprehensive view of the previous day's price dynamics.

Why it may be useful

These key levels provide traders with crucial reference points for understanding market sentiment and potential support/resistance zones. By visualizing the previous day's price extremes and midpoint, traders can make more informed decisions about entry, exit, and stop-loss placement.

The indicator helps traders quickly identify important price levels without manual calculation, enabling faster and more strategic trading decisions. It offers a simple yet powerful way to contextualize current price action within the framework of the previous day's trading.

When to explore it

This indicator is most effective for day traders and scalpers who need quick insights into recent market behavior. It works best in liquid markets with consistent daily price movements, such as major forex pairs, stock indices, and popular commodities.

Traders should use these levels in conjunction with other technical analysis tools to confirm potential trade setups. It is particularly useful during volatile market conditions or when seeking to understand short-term price dynamics and potential support/resistance levels.

Keep exploring