Previous month high and low
The highest and lowest prices of last month, carried forward as lines for the current month.
What it shows
The high and low of the previous month are a wider view than weekly levels. Price in the new month may react to them or break through.
The lines are objective because every month has exactly one high and one low.
How we find it
The same code that draws it on your chart follows these steps, with the same result every time.
- Find the highest high and lowest low of the last full calendar month.
- Draw a line at each starting at the first bar of this month.
- Extend to the right edge.
Starting values: Window previous calendar month; Used on daily and weekly charts. These are proposed and will be tuned on real price data before launch.
How to read it
- The shaded block is last month's range.
- The dashed lines extend its high and low.
- Price outside the shaded range is beyond last month's extremes.
Status labels you may see
| Label | What it means |
|---|---|
| Inside last month's range | Between the two lines. |
| Above last month's high | Closed above the top line. |
| Below last month's low | Closed below the bottom line. |
What cancels it
Nothing cancels it. The lines are replaced each month.
What traders check next
- Whether price tested the line and turned.
- How wide last month's range was.
- How many days the new month has spent inside the range.
Limits
- Months have different lengths.
- Early in a new month the lines are far from the action.
- A quiet month gives two lines close together.
Try it in forecastviz
- Open any ticker and choose Support and resistance → Previous month high and low in the left menu.
- Switch between 6M, 1Y to see how the picture changes.
- Compare with Previous week high and low and Classic pivot points on the same chart.
Questions
Why months?
Many funds report monthly, so some traders watch monthly levels.
Can I use it on 3M charts?
It works best on 6M and longer, where a month is a clear unit.
Related trends
Further reading
- Murphy, Technical Analysis of the Financial Markets
- Edwards and Magee, Technical Analysis of Stock Trends
Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.