OPEN = LOW OR OPEN = HIGH (OHL) STRATEGY

2018-04-11T03:30:00.003-07:00

OPEN = LOW OR OPEN = HIGH (OHL) STRATEGY

Very popular Intraday trading Strategy called OPEN HIGH LOW strategy.

Technique Rules:

After market open at 9.15 A.M. wait for 30 minutes and then 9.45 A.M. at scan for the stocks which are having OPEN = HIGH and OPEN = Low (better to choose F&O stocks)
Here is the link for the stock screener OPEN = HIGH AND OPEN = LOW
At 9.45 A.M. Note the HIGH and LOW of the above stocks.

Rules to Buy:

First select those stocks whose OPEN = LOW.
Take the difference of HIGH and LOW for the first 30 minutes.
Buy Entry point is = OPEN PRICE + (HIGH-LOW)/2
Stoploss is (OPEN PRICE - 0.1*OPEN PRICE)
Target is (OPEN PRICE + 1.28 * OPEN PRICE)

Rules to Sell:

First Select those stocks whose OPEN = HIGH
Take the difference of HIGH and LOW for the first 30 minutes
Sell Entry Point is = OPEN PRICE - (HIGH - LOW)/2
Stoploss is (OPEN PRICE + 0.1 * OPEN PRICE)
Target is (OPEN PRICE - 1.28* OPEN PRICE)

OPEN RANGE BREAKOUT (ORB) TECHNIQUE

2018-04-07T21:33:00.004-07:00

Opening Range Breakout (ORB) is a commonly used technique by experts and amateur traders This technique is only for intraday trading.

Technique Rules:

After Market Open at 9.15 A.M. wait for minimum 30 Mins
Now at 9.45 A.M., Note down the HIGH and LOW of a particular stock which you want to trade.
The difference between HIGH And LOW is called OPENING RANGE

OPENING RANGE = HIGH - LOW

Rules to Buy:
Wait for the Stock to break or cross the HIGH. Once it crosses Buy the stock at that price.

Buy Entry Point is HIGH (i.e High Price till 9.45 A.M)

Stop Loss is( HIGH-OPENING RANGE/2)

Target is HIGH + OPENING RANGE.

Rules to Sell:
Wait for the stock to break or go below the LOW. Once it breaks LOW, sell that stock

Sell Entry Point is LOW (i.e High Price till 9.45 A.M)

Stop Loss is( LOW+OPENING RANGE/2)

Target is :LOW-OPENING RANGE.

Do's and Don't:

Do not apply the technique when the opening range is too large. Better avoid this technique, because stoploss is far.
Overall Markets moving in the direction of the Trade. Take Buy calls only when the Nifty and sensex are bullish and sell calls only in bearish market.

Ex:

Shiram Transport Finance 15 mins Candle Pattern chart.

At 9.45 A.M. The High and Low of the stock is 1535.15 and 1506.55.

Opening Range is 1535.15 - 1506.55 = 28.6

At 10.00 A.M. Buy call was initiated, because it crossed the Opening Range High of 1535.15.

So Buy the stock above 1535.15

Stoploss = High - opening range/2 = 1535.15 -28.6/2 = 1520.85

Target = High + opening range = 1535.15 + 28.6 = 1563.75

In the above stock, the target was successful reached. Here the risk reward is 1:2

Estockz

OPEN = LOW OR OPEN = HIGH (OHL) STRATEGY

OPEN = LOW OR OPEN = HIGH (OHL) STRATEGY

OPEN RANGE BREAKOUT (ORB) TECHNIQUE