Hi everyone, I’m current reading long term secrets to short term trading. I’m currently stuck on interpretation what the author is saying here. Any insight, interpretations/perspectives would be much appreciated!
thank you.
It’s really tiny print, @tomo22 .
Nobody with a small screen (or a phone) will be able to read it at all, and your image isn’t clickable to expand it.
Since it’s just a couple of sentences, could you maybe type out or paste in the text, so that members can read it, please? I think you’re much more likely to get helpful responses, that way! 
My interpretation of large range up close day usually open close to (near) the low (of the day) and close near the high (of the day)
Large range down close days open around the high of the day and close near the low (of the day) would be the inverse.
So on the chart, we would look to enter a buy very close to the opening price but generally not below the low price of the day, if we expect price to continue trading upward in the range.
I use the previous daily high and lows to determine if price can make a sustained breakout of the previous day’s trading range. In the chart above, once price can’t stay below the PDL, I expect for price to test or target the PDH. I find it helpful for directional bias when used with other analysis.
Side Note: Larry Williams could have done better with the using of the word ‘close’ multiple times in the same sentence with 2 completely different meanings.
For anyone else wanting to weigh in, the text is from page 44 of Long-Term Secrets to Short-Term Trading by Larry Williams.
My interpretation is just that and it isn’t necessarily correct. I also would love to hear other’s interpretation of it. As far as the PDH and PDL that’s just how I use it relative to range days and it also isn’t necessarily correct but it works for me.
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hi @MartialChartsFX, thank you for this. What does PDL and PDH mean?
so to enter a buy order we would need to have confirmation of price resisting its low which allows us to understand that its most likely going to reach PDH?
is this an example of a large range down close day?
also what do these close up and down days indicate for traders such as ourselves? and do you personally use this trick?
Large is relative and Larry doesn’t really qualify what counts as large.
I don’t use the daily candle as described in the book. I only mark out the high and low of the previous daily candle to assist with my bias. If price has already traded above the PDH before the session open, it’s a bullish indication for me, if it trades below then it’s a bearish indication. If price is between the PDH and PDL, I’m considering it a range day and anticipating a breakout in the future. I pay attention to these levels throughout the session for retest or breakout. I mainly trade indices now, but it may work on currencies also, I haven’t tested it though.
My trades don’t come from the PDH or PDL and these don’t determine my bias alone, my analysis does that, but it’s low hanging fruit of useful information so why not look at it.
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okay thank you!,
i know what you mean because i follow a similar tactic. I like to use PDH and PDL as daily basis too, however, i like to use this as one part of analysis and compliment it with further analysis to develop a proper trade.
also looking externally, marking ranges from small to large like Larry says can help with directional basis and staying away from small range areas, to prepare for the large range areas.
Basically author talked about big trend days that mostly open low or high. So there not much pullback to catch. Do you trade these setups?
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hi @Trevor3649
i don’t solely use this as my strategy only as a directional bias. It just provides me indication of what the day may look like through which i can take quick trades off. i like to compliment this idea with some external and internal analysis to further my opinion on bias. so i wouldn’t say i trade on these setups but merely use it for assistance.
here is a basic example
this is what i mean by basic directional bias, just some thoughts that happen in my head when i draw up PDL and PDH. the vertical lies FYI are thursdays day.
this is todays range printed on the daily TF we can see externally that it lies in between yesterdays high and low summing up my point if this makes things clearer
hi @MartialChartsFX, could you help me with another interpretation please.
here. thank you!
sorry about the wrong facing picture
I’ll have to re-read it a couple of times. My initial impression is that he’s referring to price breaking below the opening price when the expectation is for a large range up day. I don’t take a lot from this since I try not to force my expectations on the market in favor of trading what I see.
My bookmark is sitting on page 49 where I last read. I got the book for the market structure chapter, but I plan on reading it all eventually.
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Just curious - do you find it works on certain pairs or indices?
Hi @MartialChartsFX yes I understand Thanknyou for this. Yes I agree Larry can sometimes be super specific in terms of his opening and closing.
I like to usually use daily range and switch to LTF and whether I break PDH and PDL for my bias usually rids the noise better
Hi @Sufshiken,
I like your different approach to this. OHLC is good to mark however on trading between high and close may be too specific for me to set a bias, I will try and backtest your Theroy and see how it performs during backtesting! Thank you very much
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Hi @Trevor3649, I just started trading this approach. So far I’ve taken a decent amount of trades using this strategy on EUR USD and abit on USD JPY seems to work well for setting a bias and taking quick intraday trades, however I like to consider the external factors too.
I usually trade forex and metals so I’m not sure about others. Still work to be done!