Want To Master The Open High Low Close Trading Strategy?
I guarantee that you will gain something about the open high close trading strategy by the end of this article.
Then, finally, you will get what you need about open high low close trading strategy.
This strategy is one of my favorite; when open is equal to high, I will go for short; when open is equal to low, I will go for long; this can apply to most of the scrips.
When I found this type of candle, I will get excited to trade because it is the most probability trade.
I will show how to identify this candles in open high low close trading strategy.
I am not a trainer; in the stock market, there are no trainers; all are learners.
Open High Low Close Trading Strategy
OPEN EQUALS TO HIGH
The first candle should be a red candle for the open equals to high strategy. It must be the big or medium red candle that gives some signal, and the market is on the selling side; you should wait for the candle to close at any time frame and take the trade at the next candle opening.
I recommend intraday traders for 5 minutes time frame and positional traders for 15 minutes time frame.
For example: In a nifty 5-minute chart, the candle has opened in 14888, and the high of the candle is also 14888; you have to recognize that market is on the selling side and go for short, your stop-loss should be the high of the candle and target should be in 1:1 ratio or more.
I recommend not to trade for significant risks and small profits; always, your profit should be greater than your risk.
When you find the open equals the high candle, you should recognize that the market is in sellers’ control; you should go with short.
It is one of the most successful strategy, and sometimes I will book 1:2 and 1:3 ratio profits.
This type of pattern is most potent when the market opens.
For example market will open at 9:15 am; if the first candle in five minutes chart is open equals to the high candle, confidently you can take the trade and book profits, sometime your stop-loss may hit, but no problem, that is very rare.
But be careful while keeping stop-loss; I will keep my stop-loss slightly above the high of the candle because sometimes, the price will come till the high of the candle and, it will hit your stop-loss and revert again towards the profit side.
If the open equals to high candle don’t have any wicks or shadows, it is called bearish Marubuzo candle; if I saw that candle, I will get excited to take the trade; many times I had booked 1:3 targets, but in rare cases, stop-loss hits.
Bearish marubuzo candle indicates that the market is drastically falling. Therefore, many lots will short by the sellers; I will blindly enter the trade by seeing that bearish marubuzo candle.
You may say that Open equals high means taking a short position, that’s right, and your stop-loss should be above the high of the candle.
OPEN EQUALS TO LOW
This strategy to go long, and this can frequently happen in the opening of the market.
Open of the candle and low of the candle should be the same; you should wait for the candle to close in any time frame.
After closing the candle, you have to check whether the candle is in open equals to low, and it needs to be a big candle or medium.
After confirming all the rules, you should take the trade at the next candle opening and keep the stop-loss at low of the open equals to the low candle.
I recommend keeping the stop-loss slightly below the candle’s low; by now, you will be able to answer why the stop-loss has to stay slightly below the low of the candle?
It is one of the best strategies and most probable ones.
For example: If the nifty, opening of the candle is at 14888 and the candle’s low is at 14888, you should wait for the close and take the trade; stop-loss should be below the 14888 prices.
Bullish marubuzo candle will give the profits up to1:3 ratio.
By seeing bullish marubuzo candles, I will notice that buyers are pushing the market to the bullish side. Therefore, I will blindly enter the trade at the next candle opening, and I will take the profit at a 1:2 ratio; sometimes, it may give up to a 1:4 ratio.
You can be able to identify the candle by following some rules :
marubuzo candle didn’t have wicks or shadows
opening and low of the candle should be the same (BULLISH MAUBUZO)
opening and high of the candle should be the same (BEARISH MARUBUZO)
Another essential thing about Open High Low Close trading strategy:
Marking of the previous day highs and lows for open high low close trading strategy:
If open equals high candle open below the previous day low, that trade will be the most probable and profitable. In that case, I will confidently go for short.
Stoploss should be above the open equals to the high candle.
If open equals to low candle open above the previous day high, that trade will be most accurate and more potent.
You can go for the long by keeping less risk and expecting more reward.
Stoploss should be below the open equals to the low candle.
When should I trade a open high low close trading strategy:
By identifying the open high low close trading strategy candle, I will not take the trade blindly without calculating my risk.
My risk should be less, and the target has to be more when compared to the risk.
That should be in the ratio of 1:1 and above.
Mostly I would like to prefer 1:2 and above trades.
Because I would like to concentrate on my losses, then my profits.
The only important thing in every strategy is to bear the loss.
The market will decide your profit.
The open high low close trading strategy will frequently occur among all the stocks and index.
You may ask the question, among all the stocks, how will you pick up such kind of open high low close trading strategy at a time?
All your answers are under one roof, that is, the TRADING VIEW platform.
You may be aware of this platform; in trading view, the screener will filter all types of our requirements, you can scan the stocks at a time.
By applying filters, you will get which stocks had opened in the open high low close trading strategy.
Your job will be get done quickly under the trading view platform.
You may ask another doubt, among the filter stocks, which scrip shall you pick for open high low close trading strategy?
My favorite stocks are nifty 50 scrips.
Among those, I will trade only large capital stocks because operators will not manipulate large caps and they will move regarding the news, or I will trade nifty and nifty banks in options.
An open high low close trading strategy can be most applicable to all the scrips; it will occur very frequently and most accurately if all the above rules must agree.
The important thing you have to do is, grasping the article, then it’s done
winning chances of this open high low, close strategy are solid.
By mastering these types of patterns, you will be a successful trader in open high low close trading strategy.
NO STRATEGY WILL WORK WITHOUT HITTING STOP LOSS.
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