The term “Daily Low” refers to the lowest price at which an asset, such as a stock or commodity, has traded during a specific trading day. It is a key indicator used by traders and investors to assess market volatility and price trends. By tracking the daily low, market participants can gauge potential support levels, which are prices where buying interest is strong enough to prevent further declines.
In the context of finance, the daily low is crucial for making informed decisions. For instance, if an asset approaches its daily low, traders may consider it a buying opportunity, anticipating a price rebound. Conversely, if prices consistently hit lower daily lows over consecutive days, it may signal a bearish trend, leading to cautious selling or portfolio adjustments.
Overall, the daily low serves as an essential metric for strategies related to timing entries and exits in financial markets, helping participants navigate the complexities of price movements throughout the trading day.
