Various strategies under technical analysis carry different accuracy levels. The page contains an Open high low scanner that will provide real-time data from the stock market. This will also provide you trade entry levels on all of the Nifty index stocks which falls under the open = high or open = low criteria. If you are trading in Zerodha you can also choose your capital and your stop loss and your target and can trade these stocks directly from this page.
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This specific scanner is formed by one of the popular strategies in the technical analysis, Open High Low Strategy. This scans stocks where the day’s open is equal to day’s low or where the day’s open is equal to day’s high. First of all, traders must be acquainted with the application process of the scanner. The guideline is also given below.
As I’ve mentioned above that the scanner is formed on a popular strategy of technical analysis. As the strategy name suggests, a stock’s open, high and low prices are the main components of it. Briefly, according to the strategy, if the open and low price of a stock is the same, the stock can go high on that day. On the other side, if the open and high price of a stock is the same, the stock can move downward. We have also included a clear stop loss and target in this page.
Besides identifying a stock’s trend, the strategy also provides target and stop loss too. Under the strategy, when a stock’s open and low price remains the same, the trend is up or the price can go high. In this scenario, the stop loss should be at a low point. Reversely, when the open and high price of a particular stock remains the same, the trend is down or the price will go down. Here, the stop loss should be on the high. So, simply (Open=Low) means BUY and (Open=High) means SHORT SELL
OHL strategy is the short form of Open High Low strategy. According to the strategy if a stock’s open price and low price remains the same it tend to move up. On the other hand if the stock’s open price and high price remains the same it tend to move down.
Example of Open = Low trade
On 26th March 2019, the Reliance Industries share has opened at 1330.30 and made an opening low at 1330.30. After that the stock has rallied to an intraday high of 1371.60 making decent gains for the long players.
Example of Open = High trade
On 8th of April 2019, the Adani Ports share has opened at 388.30 and made an opening high at 388.30. So whatever was the open of the day that became the high of the day. So once the stock has broken its morning range it has crashed to the day’s low of 374.95. This made decent gains for the short sellers.
How to Trade Using the Open High Low Scanner?
Based on the tactic, we at StockManiacs (Indrajit Mukherjee) developed the scanner. The ideal time of checking the scanner is from 9.30 am morning after the market open, traders can check the scanner and analyze the market. Besides open, high, low price, the scanner has target and stop loss too. Let’s get a basic idea about the Open-high-low tactic.
- So, every trading day, on 9.30 in the morning, first open our website Stockmaniacs.net, then go to the Open High Low Scanner from the Freebies section. Once you click on it, you will get a scanner look like this:
- As you can see in the above image, at the top of the scanner there is a row that contains blocks like Capital, Stop-Loss, Target Percent, Choose Broker. By default the capital is given 100000, stop-loss is 1%, target is 2%, and broker is Zerodha. You can change capital, stop-loss, target as per your choice. We are currently giving only zerodha scanner services.
- For demo purpose, I’ve added 5000 capital, stoploss 2%, and target 5%. Here, suppose, I want to trade on GRASIM. Now, see, as you know if Open=Low, then buy signal comes. Reversely, if Open=High, then sell signal comes. Here, in GRASIM, Open=Low, so, it is Buy. Now, I want to trade on it, so I choose to Buy or BO order. I prefer the Buy order. Once you click on Buy, your kite page will be opened.
- Once you put your Password and 2FA, your account will be opened, and you get an order page like this. Here, you can place your order or you can modify it to limit order. If you want to buy it on the market price, simply place the order. As my capital was Rs.5000, I can buy maximum 8 quantity from it.
- And if you want to buy it on the limit or your desired price and quantity, just go to the modify option here.
- After that, you can place the price and quantity as per your choice and click on the update. Once the price match with market, your order will be executed. For example, instead of 617.25 market price, I choose my limit price 615 here.
- Your executed order will come in the position section.
So, as you can see placing order is simple from our website. All you need is to open the scanner, find the buy-sell signal and place order, that’s all.
Advantage of the Open High Low Scanner
- The application process is also quite easy.
- You can save lots of time by trading from the page.
- All you need to do is open the page at 9.30, put your preferred capital, target, stop loss, and place the order.
- It is totally a time-saving method. There is no need for prolonged analysis.
- Traders can get an idea about target-stop loss.
- It provides real-time data automatically without any manual effort.
With the help of the Scanner, analysis of profitable trades will be easier.
We should not use the scanner as the only way to get a profitable trade. To make the accuracy level higher, traders must also trade with much discipline. Trade each stock with the same value. Like if you are trading both SBIN and Reliance with our open high low scanner, trade both the stock for say Rs. 50000. Many traders make the mistake and trade say 100 SBIN as well as 100 Reliance. Instead keep the trade size same. Trade limited number of stocks as you may not be able to handle many trades at a time.