Low Price

The lowest price reached by a security during a specific time period. Used to identify support levels and calculate volatility measures.

Introduction

The Low Price represents the lowest price reached during a specific time period and is a neutral indicator that provides crucial information for both LONG and SHORT strategies. It serves as the primary reference for support levels, breakdown signals, and volatility measurement in cryptocurrency markets.

How Low Price Works

The Low Price represents the minimum price reached during a specific time period (candle). It shows the lowest point that sellers were willing to accept during that period, making it essential for identifying support levels and potential breakdown points.

Market Psychology: The Low Price represents the maximum selling pressure during a period. When price approaches previous lows, it tests whether sellers have enough conviction to push through support or if buyers will defend these levels.

Key Characteristics

Attribute	Details
Category	Price Data
Type	Neutral Price Reference
Primary Use	Support identification, breakdown signals
Timeframe	All timeframes supported (1m to 1M)
Confirmation	Volume, momentum indicators

Strategy Applications

🟢 LONG STRATEGY (Support Bounce)

Low Price is used in LONG strategies primarily for support trading - when price bounces off previous lows with volume confirmation, it signals potential upward reversal.

Base Entry Order (LONG)

Trigger Type: Once per bar close
Bar TF: 1H
First Condition: Close Price
Timeframe: 1H
Operator: Greater Than
Second Condition: Low Price
Timeframe: 4H

AND

First Condition: RSI
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 35

Additional Entry Orders (LONG)

Additional Entry 1: Double bottom formation
First Condition: Low Price
Timeframe: 1H
Operator: Greater Than
Second Condition: Low Price
Timeframe: 1H

OR

Additional Entry 2: Volume surge on bounce
First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Volume
Timeframe: 4H

Take Profit Orders (LONG)

Rule 1: Exit condition - Resistance level reached
First Condition: Close Price
Timeframe: 1H
Operator: Greater Than
Second Condition: High Price
Timeframe: 4H

OR

Rule 2: Exit condition - Overbought conditions
First Condition: RSI
Timeframe: 1H
Operator: Greater Than
Second Condition: Value
Value: 75

OR

Rule 3: Exit condition - Volume declining at highs
First Condition: Volume
Timeframe: 1H
Operator: Less Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

Stop Loss Orders (LONG)

Rule 1: Stop loss - Support breakdown
First Condition: Close Price
Timeframe: 1H
Operator: Less Than
Second Condition: Low Price
Timeframe: 4H

OR

Rule 2: Stop loss - Volume breakdown
First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

OR

Rule 3: Stop loss - Momentum failure
First Condition: MACD Line
Timeframe: 1H
Operator: Cross Below
Second Condition: MACD Signal Line
Timeframe: 1H

🔴 SHORT STRATEGY (Breakdown Focus)

Low Price is used in SHORT strategies when price breaks below previous lows with volume confirmation, indicating potential downward continuation.

Base Entry Order (SHORT)

Trigger Type: Once per bar close
Bar TF: 1H
First Condition: Close Price
Timeframe: 1H
Operator: Less Than
Second Condition: Low Price
Timeframe: 4H

AND

First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

Additional Entry Orders (SHORT)

Additional Entry 1: Sustained breakdown confirmation
First Condition: Close Price
Timeframe: 1H
Operator: Less Than
Second Condition: Low Price
Timeframe: 1H

OR

Additional Entry 2: Volume acceleration
First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Volume
Timeframe: 4H

Take Profit Orders (SHORT)

Rule 1: Exit condition - Next support level reached
First Condition: Close Price
Timeframe: 1H
Operator: Less Than
Second Condition: Low Price
Timeframe: 1D

OR

Rule 2: Exit condition - Oversold bounce
First Condition: RSI
Timeframe: 1H
Operator: Less Than
Second Condition: Value
Value: 20

OR

Rule 3: Exit condition - Volume exhaustion
First Condition: Volume
Timeframe: 1H
Operator: Less Than
Second Condition: Simple Moving Average (10)
Timeframe: 1H

Stop Loss Orders (SHORT)

Rule 1: Stop loss - Failed breakdown (back above low)
First Condition: Close Price
Timeframe: 1H
Operator: Greater Than
Second Condition: Low Price
Timeframe: 4H

OR

Rule 2: Stop loss - Volume surge reversal
First Condition: Volume
Timeframe: 1H
Operator: Greater Than
Second Condition: Simple Moving Average (20)
Timeframe: 1H

OR

Rule 3: Stop loss - Momentum reversal
First Condition: MACD Line
Timeframe: 1H
Operator: Cross Above
Second Condition: MACD Signal Line
Timeframe: 1H

Advanced Strategy Combinations

Multi-Timeframe Low Price Analysis

Setup

Higher Timeframe Support:

• Daily: Low Price defines major support zone

• 4H: Low Price shows intermediate support

• 1H: Low Price provides entry signals

• 15m: Low Price for precise timing

Execution

Support Entry: 1H Close bounces off 4H Low Price Breakdown Entry: 1H Close < 4H Low Price Stop: Opposite side of support/breakdown level

Double Bottom Support Strategy

Setup Process:

1. Price approaches previous Low Price level

2. Volume increases on second approach

3. Low Price holds above previous low

4. RSI shows bullish divergence

Execution:

• Base Order: Low Price > Previous Low Price

• Additional: Volume confirms strength

• Take Profit: Resistance levels, overbought conditions

• Stop Loss: Close below support low

Risk Management Guidelines

Position Sizing

Strategy Type	Position Size	Conditions
Support Trading	Standard	Low Price bounce with volume
Breakdown Trading	Standard	Low Price break with volume
Failed Breakdown	Increased	High volume false breakdown
Low Volume	Reduced (50%)	Weak Low Price signals

Low Price Reliability Factors

High Reliability

✅ Multiple timeframe support confluence ✅ High volume on breakdown attempts ✅ Clear bounce patterns at lows ✅ Momentum indicator confirmation

Low Reliability

❌ Low volume at support tests ❌ Conflicting timeframe signals ❌ Choppy, unclear low formations ❌ Mixed momentum signals

Best Practices

For Support Trading

1. Volume confirmation - Ensure volume surge on Low Price bounces

2. Multiple timeframes - Confirm support across different periods

3. Momentum divergence - Look for bullish RSI/MACD divergence

4. Patience - Wait for clear bounce signals

For Breakdown Trading

1. Volume validation - Confirm breakdowns with volume surge

2. Quick execution - Enter immediately on confirmed breaks

3. Risk management - Use previous Low Price as stop reference

4. Target identification - Use next Low Price levels for targets

Common Mistakes to Avoid

• Premature entries - Entering before Low Price signals are confirmed

• Ignoring volume - Trading Low Price breaks without volume validation

• Wrong timeframe - Using inappropriate timeframes for support levels

• No confirmation - Trading Low Price alone without supporting indicators

• Poor risk management - Not using Low Price levels for stop placement

Market Conditions Analysis

Market Type	LONG Strategy Effectiveness	SHORT Strategy Effectiveness
Uptrend	🟢 High (support holds)	🔴 Low (against trend)
Downtrend	🟡 Medium (support bounce)	🟢 High (breakdown continuation)
Ranging	🟢 High (support trading)	🟡 Medium (breakdown potential)
High Volatility	🟢 High (clear bounces)	🟢 High (clear breakdowns)
Low Volume	🔴 Low (unreliable signals)	🔴 Low (weak confirmations)

Related Indicators

Indicator	Relationship	Link
High Price	Resistance counterpart	High Price
Close Price	Breakdown confirmation	Close Price
Volume	Breakdown validation	Volume
RSI	Momentum confirmation	RSI

Conclusion

Low Price is essential for support identification and breakdown trading. Its neutral nature makes it valuable for both LONG strategies (support bounces) and SHORT strategies (support breakdowns) when used with proper confirmation.

Key Takeaways

• SUPPORT: Low Price defines natural support levels

• BREAKDOWNS: Primary signal for downward breakdown strategies

• CONFIRMATION: Always confirm with volume and momentum

• VERSATILE: Works for both trend-following and reversal strategies

• ESSENTIAL: Critical for volatility measurement and risk management

Success with Low Price requires understanding its role in defining support levels and using it appropriately for both support bounce and breakdown trading strategies. Always combine Low Price analysis with volume confirmation and proper risk management.

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