Open High Open Low Strategy In Intraday

The strategy of the open low and open high concept is slightly different and can be fairly confusing to understand. Either way, we will try to make it as easy as we can. In this strategy, a signal of buying the index or the stocks gets generated, when the said stocks or index has the same value as open and low. Just like that, conversely, a sell signal or hint is popped up and gets generated when the selected said stocks or index has the same value for open and high both at the same time.
For the whole strategy of open low to work for the intraday type of trading, an investor and a trader should always keep in mind to trade in very large quantities but for small targets. As volatile as the market is with all its fluctuations, as a trader you should be quick enough to make a quick entry and a very Swift exit if you are looking up for booking some good profits. However, this strategy does come with slight issues as it involves a high-risk reward ratio, for which you should be extremely careful while trading.

Since now we have become acquainted with the whole concept of open high open low strategy and know what it is, let's take a quick look at some of the features of this concept that might help you further to get a clearer idea of how this whole strategy works for a trader during Intraday trading.

• Having a High-Risk Reward Ratio: Usually, the process of the Strategy of open high open low carries a high risk of reward ratio. This generally happens because intraday trading works slightly differently and the strategy of open high and open low enables the investors and the traders to set up a 'stop loss' near the strike price under the intraday method of trading. It is also seen and noted by the experts that when the opening price of the stock is lower than the traders seem to set up a stop loss at the low of the 15 minutes candlestick opening.
• Analyzing Long Term Stock Charts: One of the most distinct and distinguished features of the open high open low strategy is that it is required by the traders to analyze the Intraday charts of long-term stocks. The prime recommendation of the experts, especially for the investors and traders who follow the intraday method of trading is that they should refrain from investing against a stock's trend. Hence, it is crucial and very necessary for the traders to have an idea about the trends of the stocks they are looking forward to selecting and that's why carrying out a complete analysis of a weekly or maybe a monthly report might be a good idea. This analysis will help them to know if they are going against a stock's trend.
• Using Scanners to Evaluate a Stock's Trend: The strategy of open high open low is not for every trader that enters the market. But for the investors and traders who do follow this strategy, need to assess a stock even with more precision, as we have read earlier. Hence, it is better to use the method in which the traders can select or pick out some of the stocks and put them on their watch list and scan them to know about their fluctuations and their trends which would in turn provide the brokers with much more efficiency.

There are certain things that you should take notes of before opting for OHL

• The traders need to trade the shares that have a high volume for trading. The stocks that have high volume boosts the confidence of intraday traders.
• The individual traders and investors should consider trading on the stocks only if the closing price of the first candle seems to be lower than that of the second candle.
• Traders and investors who are opting for the open high open low strategy should consider entering the market in long or short positions with the help of a range breakout.

The open-high open low strategy is nothing new for regular investors as they go and grow through it daily and is known as one of the most popular strategies that a trader experiences. However, if you are a new trader or you are just learning the ropes of the market, it is highly advised and suggested that you should first consider going for advisory services before you start to execute trading strategies right on the field. Hence, we hope that the knowledge we have provided you so far would be held beneficial.