Open high low scanner strategy is one of the most reliable and easiest strategies for all beginners. This strategy works on Nifty and Futures and options stocks perfectly well. If done regularly with proper risk management and money management, Open high low scanner strategy will help to answer your question of how to select stocks for intraday.
Open high low scanner is a technique used to filter out Open = High or Open = Low scripts for Intraday trading. BUY signal is generated when OPEN = LOW & SELL signal is generated when OPEN = HIGH
Using above screener , we can start selecting stocks for intraday .
How to use Open High Low strategy
Let us take a detailed look at how to select stocks for intraday using Open High Low Scanner
Use the Weekly Chart:
Use the weekly chart graph to analyze the longer-term trend. It’s very important to analyze the “Long term trend”. Trading in the direction of the trend will increase your profit drastically.
If a particular stock opens “Open = Low” and the weekly chart is also in upper trend, then it indicates that you can go Long. In a similar way if “Open = High” and the weekly chart is in downtrend you can go short.
Filter the Volume:
For Intraday trading, choosing high liquid stocks for trading can help you to Enter and Exit a trade very easily.
The column turns green when the volume is above 5,00,000, Which means there is good liquidity and this will help you to enter and exit trades easily.
To become successful in Intraday trading experimenting and testing different strategy is very important. Selecting stocks plays a vital role in intraday trading, there are various strategies to select stocks for day trading. The Open high low scanner strategy is one of the important strategies which has high accuracy.
Why Open High Low scanner Strategy is easy?
- You can understand Open high low scanner strategy very quickly and execute it in the next trading session.
- You don’t need for pre-day analysis, like before.
- The process of selecting stocks becomes so easy, and you just have to know the trend/direction the market is headed.
How does Open high low scanner strategy work?
In Open high low scanner, If today’s open is equal to today’s low which is ”OPEN=LOW”, then buy signal is generated. As you can see the graph in the image below when the market is opened ITC stock is opened at low and keep on moving up though out the market hour. So, it is advisable to buy when open=low.
In Open high low scanner, If today’s open is equal to today’s high which is ”OPEN=HIGH’, then a sell signal is generated. As you can see the graph in the image below when the market is opened BHARTI AIRTEL LTD stock is opened at High and keep on moving down though out the market hour. So, it is advisable to sell when open=low.
Entering into Trade
- Before entering into trading, you must add to watchlist the stocks with Open=Low and Open = High when the market open from the scanner
- If the Nifty50 index is above 0.25%, then you can go on the buy-side and if below 0.25%, then you can go on the sell-side.
- When the Stock market opens, if the low/high is not broken, then you should Buy/Sell stock according to the strategy
- Money management is very important. Keep Risk reward ratio 1:2
Placing Stop Loss
It is preferred to keep Stop-Loss at the open/close of the previous candle,
But the stop loss should never be more than 1% of the stock price(the risk-reward ratio). If its more than 1% then it is not advisable to take the trade.
Additionally , you can visit NSE INDIA website for checking of Nifty is positive or negative
What is Open High Open Low strategy?
The strategy is one in which a buy signal gets generated when an index or a stock has the same value for both, open and low. Conversely, the sell signal is generated when the index or stock has the same value for both, open and high.
How do you use Open High Low Close chart?
An OHLC chart shows the open, high, low, and close price for a given period. It can be applied to any timeframe. The vertical line represents the high and low for the period, while the line to the left marks the open price and the line to the right marks the closing price.
What is a volume Open High Low Close chart?
Volume Open High Low Close Stock Chart is basically a column chart that shows volume on the primary axis, with a secondary axis that shows the High-Low-Close chart.