The ‘Open High Low’ Trading Strategy Explained

If you want to profit from daily, small market fluctuations, you’ll need to use an open high low trading strategy.

The Open High Low Strategy

In layman’s terms, an open high low approach generates a purchasing signal when a stock’s open and low prices are the same.

When the stock’s open and high prices are both the same, a sell signal is produced.

An intraday trading strategy is one in which all positions are squared off before the market closes.

This post would go into all of the important aspects of the Open high low trading approach.

What is the Open High Low Strategy, and how does it work?

When indexes or securities with the same valuation at both open and low, the open high-low approach gives a buy signal, meaning that you should buy the stocks/shares.

When the open and high prices of the indexes or stocks are the same, a sell signal is assumed, meaning that the shares should be sold.

Isn’t that simple?

There are scanners available, or you can build your own Open high low scanner, which can assist you with more effectively interpreting stock values so you know when and how to buy.

Open=high or open=low scripts are processed using the scanner.

This scanner can be used to find levels to buy or sell.

How Do You Implement an Open High Low Strategy?

Let’s look at how to make these plans a reality.

Login into your trading account and deposit the appropriate amount of money before the market opens, i.e. before 9:15 a.m.

Select the stocks that are predicted to grow and add them to your portfolio watchlist, as previously mentioned.

Make a note of the previous day’s peak, low, and pivot levels while building the watchlist, which you can easily find on the brokerage website or tradingview charting platform.

At least until 9.45 a.m., keep an eye on how stock markets are changing in response to increases in open interest or other reports.

Last but not least, many experienced traders use the open high low approach on a daily basis.

If you want to profit from daily, small market fluctuations, you’ll need to use an open high low trading strategy.