Previous Session High and Previous Session Low in ICT-TFlab

The Previous Session High (PSH) and Previous Session Low (PSL) are essential price reference points widely used in ICT (Inner Circle Trader) strategies and Smart Money Concepts (SMC). These levels help traders understand institutional market behavior, identify support and resistance zones, and execute trades with precision. They are core topics in any effective forex education program.
What Are PSH and PSL?

1. Previous Session High (PSH): The highest price level reached during the previous trading session.
2. Previous Session Low (PSL): The lowest price level recorded in the same session.

These levels serve as critical indicators of market sentiment and are used to:

1. Analyze potential reversal or continuation zones
2. Identify key liquidity levels
3. Forecast short-term price direction

Importance of PSH and PSL in Trading
Understanding and using PSH and PSL in trading can provide the following benefits:

1. Act as major dynamic support and resistance zones
2. Enable traders to anticipate breakouts or price rejections
3. Assist in determining optimal entry and exit points
4. Validate market trends and structure when used with other ICT tools
5. Enhance decision-making when combined with tools such as Fair Value Gaps (FVGs) and Order Blocks (OBs)

How to Trade Using the Previous Session High (PSH)
1. PSH as Resistance
When the current price approaches but fails to break above the PSH:

1. The level often acts as resistance
2. Bearish setups can occur near this level
3. Confluence with FVG or OB strengthens the case for short entries

2. Breakout Strategy Above PSH
If the price breaks above the PSH:

1. This indicates bullish continuation
2. The PSH may turn into support or a breaker block
3. Traders can look for long entries on the retest or continuation of price

3. PSH as Trend Confirmation
A strong breakout above PSH can confirm a bullish trend:

1. Aligns with liquidity sweeps and bullish structure
2. Increases confidence in long setups when used with additional indicators

How to Trade Using the Previous Session Low (PSL)
1. PSL as Support
When the price approaches but fails to break below the PSL:

1. This level acts as support
2. Offers opportunities for bullish reversals
3. Look for long entries with confirmation from other ICT elements

2. Breakdown Strategy Below PSL
If price breaks below the PSL:

1. This signals bearish continuation
2. The PSL may act as a new resistance zone
3. Traders can enter short positions on breakdown or retest

3. PSL as Bearish Confirmation
A decisive break below PSL validates bearish market sentiment:

1. Often supported by volume spikes or liquidity grabs
2. Confirms downtrend structure when aligned with OBs and FVGs

Conclusion
The Previous Session High (PSH) and Previous Session Low (PSL) are fundamental components in ICT trading strategies and Smart Money Concepts. Their application helps traders:

1. Monitor institutional behavior
2. Identify reliable support and resistance levels
3. Confirm trends and momentum
4. Improve trade precision through structured analysis

Incorporating these levels into your trading strategy enhances your ability to interpret price action and make well-informed decisions. Mastery of PSH and PSL is a vital step in developing professional-level forex trading skills.