Various strategies under technical analysis carry different accuracy levels. The page contains Open high low scanner which will provide real-time data from the stock market. This will also provide you trading levels on all of the Nifty index stocks.
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.
More on 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.
In the open high low scanner the first column is the stock name. The secong, third, fourth and fifth columns are the open, high, low and last traded price of that day. The sixth column checks if a logic is fulfilled or not. If open = low it will write that. And if open = high it will write that. The seventh column shows the trade buy, buy or short sell.
The eighth column shows the stop loss and the next 3 columns show the targets. There are 3 targets, target 1, target 2 and target 3.
In order to get more accuracy on the screening stocks, traders may apply other indicators like MACD, Moving Average, Relative Strength Index or RSI etc. For example, if we take MA (Moving Average) 5 and 20, if 5 crosses the 20 MA, the price is moving towards uptrend and vice versa.
You may go through another content on the same topic from our site.
Advantage of the Open High Low Scanner
- The application process is also quite easy.
- 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.