The Only Trading Strategy You Need: “pdLOD Hold”
When it comes to trading, sometimes the simplest setups are the most effective. One of my go-to strategies is the pdLOD Hold (Previous Day Low of Day Hold). It’s reliable, easy to understand, and works well across different stocks and indices. Whether you’re new to trading or just looking for a consistent play, this setup is a solid way to build confidence and grow your account without getting caught up in complex strategies.
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What is it?
It’s straightforward. You’re looking for the price to hold at the previous day’s low (marked by the red line on my charts). Even better if it’s holding at the previous week’s or month’s low.
How to trade it?
Wait for the price to test and hold the previous day’s low or briefly dip below and recover (pdLOD). This is often called a “failed breakdown,” but we’ll keep it simple. It works for most stocks and indices, but you’ll see the best results when the stock had a strong day prior or has been in a range and the low of day is near the bottom of that range. The $META daily chart below shows such a setup.
A closer looks at $META
Wait for the price to test and hold the previous day’s low or briefly dip below and recover (pdLOD). This is often called a “failed breakdown,” but we’ll keep it simple. It works for most stocks and indices, but the best results happen when the stock had a strong day prior or has been trading in a range, with the low of the day near the bottom of that range. The $META daily chart below shows this exact setup.
You can see that $META has been trading in a range over the last 5–6 days. Attempts to break down have failed, and so have the breakouts. This is a perfect setup for a pdLOD bounce play.
$META on the daily chart (D1)
10-Min Chart Breakdown
The image below shows a 10-minute chart, highlighting a few key things. The red line represents the previous day low (pdLOD), and the green line marks the previous day high (pdHOD). The low of day (LOD), open price (OP), and high of day (HOD) are marked in orange.
$META on the 10 min chart (10m)
Not $META’s Day
On this particular day, $META didn’t show much relative strength compared to the overall market. It opened in the middle of the previous day’s trading range, making it uncertain which way it would go. After the open, $META quickly dropped towards the pdLOD. Buyers stepped in and pushed the price back up to test the pdHOD. For the first 30 minutes, $META tried to break higher, but sellers stepped in and drove the price lower again. Once more, the pdLOD saw a bounce as buyers stepped in, forming a double bottom. A break of the pdLOD would’ve been a crucial blow to the bulls, so holding above it was the first step in turning the day around.
There are three ways to enter a position:
1. Go long as the price tests or gets close to the pdLOD, with a stop 1 point below (this can be adjusted).
2. Wait for a clear hold and push higher, confirmed by strong price action, velocity, and volume.
3. Use the recovery of the OP as a signal to enter long for higher prices.
In this case, all three approaches would have worked, but it doesn’t always play out this cleanly. It’s important to stay flexible.
The last thing to note is this: the real momentum shift came when $META broke above the pdHOD (the green line). It’s similar to how shorts might sell below the previous low, but in reverse. Once the buyers pushed above, shorts started scrambling.
Having this type of price action awareness can help you catch these setups intraday. Understanding the concept will open your eyes to many opportunities.
Who is Spacemonkey?
Silicon Valley to ‘The Street’
Before SpacemonkeyPRO, I spent a significant part of my career as a Product Designer in a leading tech firm in Silicon Valley. That role sharpened my ability to create meaningful, user-focused solutions—expertise I'm now applying to transform the way people approach trading. My goal is to shake off the misconceptions surrounding trading as mere gambling and introduce a more structured, predictable strategy. Emphasizing the importance of psychology, effective account management, and teamwork, I'm committed to leading members toward a trading philosophy where discipline leads to success.
When you’re ready, here’s how I can help you
I can help you by trading live with you, leveraging over a decade of experience and millions in profits. Over the last decade, I’ve developed a Playbook—a collection of strategies I use daily to trade any market condition, ensuring profitability and safety even when the market isn’t favorable.
