Final answer:
Price levels such as Year High (YH), Year Low (YL), Last Week High (LWH), and Last Week Low (LWL) serve as points of resistance or support in the market and can influence trading decisions. Prices may reverse or break through these levels based on trader reactions and historical price actions.
Step-by-step explanation:
The terms YH, YL, LWH, and LWL are likely abbreviations commonly used in trading and technical analysis, where YH stands for Year High, YL for Year Low, LWH for Last Week High, and LWL for Last Week Low. The question is inquiring how the price of a security behaves when it is near these levels. These price levels often act as points of resistance or support in the market.
When a price approaches the Year High (YH), it can encounter resistance as traders may consider the level a peak and take profits, causing a potential reversal or sell-off. Conversely, when the price is near the Year Low (YL), it may find support as it is considered a good value point where traders might buy in, expecting a reversal to higher prices. Similarly, Last Week High (LWH) and Last Week Low (LWL) can also serve as short-term resistance and support levels respectively, where these recent extremes influence traders' decisions on whether to buy or sell, potentially leading to price bounces or breakouts.
Understanding how prices interact with these levels can be crucial for traders, who may use them to make informed trading decisions based on historical price actions and psychological factors at play in the markets.