What is Open High Open Low Strategy?

In this blog, you will be able to know about a concept known as the Open High Low Strategy which is not widely used by traders, giving you an edge compared to other traders.

What is Open High Open Low Strategy?

What is Open High Open Low?

A particular price movement or pattern that occurs within a trading session is known as an "Open low open high". This is a pattern in which the opening price of an asset is used to being lower than the lowest price reaching it after the opening, which is used to be followed by an upcoming movement of the price that usually takes the asset's price higher than the future opening price. 

Here's a breakdown of the "open high open low" pattern:

  • This is the price at which financial tools or instruments (such as stock, commodity, and currency) are used to being able to start trading whenever the market is used to open for any particular day. The opening price is supposed to set the initial reference point for the trading session and that particular price is known as High.
  • During the trading session if by any chance the price drops of any particular stock go lower than the opening price then that particular price is known as Low.
  • The term "open high" refers to a situation where the price moves up from its lowest point (the low) after the market opens and surpasses the opening price. In other words, the price moves higher than where it started at the opening.
  • If by any chance the price moves higher than where it started at the time of the opening then that particular price is used to known as Open High
  • The "open low open high" is mostly used in intraday trading because this is the price initially experienced downward pressure mostly after the opening so this is a very useful and interesting tool for traders.

Open High Open Low Pivottrading               

As we had already told you about the Open High Open Low, so in this sub-category we will introduce you to the topic of pivot trading:

When the previous day's high, low, and closing prices are calculated and its significant price levels come as an outcome then it is known as Pivot Points. For the current trading, it is used as a current trading session.


Open High Low Screener                                

To rapidly find stocks or things which they can buy and sell they use a special tool that traders use which is known as "Open High Low Screener". When a particular something is usually used to start trading, when it goes the highest, or when it goes the lowest. Overall it helps traders find things that match their plans by checking if these things meet certain rules they set. For example, they might want to find things that start trading higher than before and then go even higher during a certain time. The screener then looks at the prices and gives a list of things that fit the rules. This helps traders find things to trade faster. However, using the tool well requires them to be careful about risks and to know a lot about how things are changing in the market.

Conclusion

The information provided in this blog is for educational purposes only and should not be considered financial or investment advice. Trading in stocks and securities involves risks, and individuals should carefully evaluate their financial situation and consult with professionals before making any trading decisions, you can take the help of Finskool advisory service which will increase your chances of earning profit.

What's Your Reaction?

like

dislike

love

funny

angry

sad

wow