Intraday Open High Open Low Trading Strategy

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Intraday Open High Open Low Trading Strategy

In this article, I am going to discuss Intraday Open High Open Low Trading Strategy in detail. Please read our previous article where we discussed GAP Trading Strategy. As part of this article, we are going to discuss the following Open High Open Low Trading Strategy pointers in detail.

1. Here you will learn
2. The logic behind the open high open low strategy
3. Where it occurs in the big picture
4. Rules for trading OPEN HIGH LOW STRATEGY
5. With live example

Intraday Open High Open Low Trading Strategy

The original name of the strategy is open deive. From a buy-sell perspective, we called it open high and open low.
Open high= sell
Open low= buy
So open rive and open high open low are both the same.

The logic behind the strategy

These are directional moves with strong hand participation and conviction.

Where does it occur? Location

1. It occurs most of the time after a sideways price action (tight price channel), or
2. You can also spot it at the start of a trading session.
3. From a strong supply or demand zone

If open-drive occurs after a sideways price action, it indicates that either strong buyers or sellers were accumulating their positions in the sideways price action, or afterward, they started aggressive buying or selling activity to move the price

If at the start of a trading session. An Open-Drive is generally caused by participants who have made their market decisions before the opening bell. The market opens and moves aggressively in one direction. Fueled by strong smart money activity, the price never returns to trade back through the opening range

The rule for selling open drive or open high strategy

• Where is the action playing out? (location in the big picture). Reason to take the trade. Best work if a breakout from any sideways price action is or gap from a strong supply or demand zone
• First, 5 min candle(opening candle) should be a big red candle
• Open = High, For easy reference 2-3 points buffer will be considered as equal not carrying much weight
• The first candle opens to close around the lower of the candle (preferably)
• Volume must be high
• Minimum Risk: Reward(R: R)=1:2(next support area)
• Breakout entry after opening range or first candle low(for open high set up)
• The price must be below vwap for sell

Let’s do it as an example

Open high strategy for entry

1. Wait for the first candle to complete. should be a big red candle
2. Volume should be high.
3. The 2nd inside candle be a Doji or narrow candle
4. low of second candle equal to low of 1st candle
5. Declining or lower volume on 2nd candle
6. 2nd candle range stays within the bottom 2/3rd of 1st candle
7. The price must be below vwap
8. Stop loss above your entry candle or day high as per your risk

Let’s do an example

Today I took this trade

On a daily time frame, the price increases with volume decreasing and closing near resistance. I clearly indicate me this move will not break the resistance.

Today price gap is up to resistance. Then wait for 1st candle to complete

What first candle told me?

• A big red candle
• Open = High
• First candle opens to close around the lower of the candle
• Volume very high

All these indicate bearishness. So sold in next candle. As shown in the below image

Please watch the complete video here for a better understanding

https://youtu.be/rHK0LHlmd5s

You can find open low or open high in our scanner

https://docs.google.com/spreadsheets/d/1v02Aq9B6xTa7WZ8OP6NUO0d-3dKMKFGrxXVv5kMjF6k/edit#gid=0

You can create your above scanner here

https://dotnettutorials.net/lesson/how-to-make-own-day-trading-scanner/

You can also watch the complete video of this Intraday Open High Open Low Trading Strategy article here.

In the next article, I am going to discuss PIN Bar Trading Strategy in detail. Here, in this article, I try to explain Intraday Open High Open Low Trading Strategy in detail.  I hope you enjoy this Intraday Open High Open Low Trading Strategy article. Please join my Telegram Channel and YouTube Channel as well as my Facebook Group to learn more and clear your doubts.