What is the intraday open high low strategy?

When an index or a stock has the same valuation at both the open and low, the technique generates a buy signal. In contrast, a sell signal product when the index or stock's open and high values are the same. Thus, traders must exchange vast amounts for small targets for the intraday open high low strategy to succeed. To book earnings as a dealer, you must make a fast entry and exit. Since the technique has a high risk-to-reward ratio, it isn't easy to handle.

Executing the open high low strategy

The stock exchange, as we all remember, starts at 9.30 a.m. As a result, you should plan to begin trading at least a few minutes before the market opens. By 9.15 a.m., you must have logged into your trading account. To put the free high low trading strategy into action, Here's how to go about doing that.

1. Log in to your trading account and double-check if you have enough funds to conduct your deal.

2. Next, navigate through the software or desktop UI to build a watch-list of scripts. By 9.15 a.m. or 15 minutes, you should have a script watch list available until the market opens.

3. When creating the watch list, make a note of the previous day's tops, lows, and pivot ratios, which you can quickly find on the brokerage website.

4. Keep an eye on how the scripts' rates are changing depending on changes in open interest for futures or portfolio news, at least before 9.45 a.m. It would be best if you still looked at the analytical maps to see how things have changed.

5. You can enter at 9.45 a.m. for a long time. First, wait for the stock to break out of the previous day's peak before the market opens. Then, you can check whether today's opening price matches today's low after it has been broken. If it does, you should go along with a stop-loss set at the low cost of the current trading day.

6. If you want to go short at 9.45 a.m., you should use the intraday open high low technique. You should make a note of the previous day's low price before 9.15 a.m. in this situation. You can wait until the stock breaks down the last day's low until the market opens for the next trading day. As soon as it does, search to see if the latest trading day's opening price equals the previous trading day's peak. If it does, you can go short with your stop-loss set at the high cost of the current trading day.

7. Once you've used the open high low trading approach in your favor, you will either leave the trade before the trading day ends or when the stop loss reach.

Note: If you are short, you can exit the role if your long trade stock reaches a new low or high during the trading day. Your trading app will show you the latest highs and lows in depth. Also, make sure you leave the trade if the stock makes a low, so you can re-enter it when the signal occurs again.

Conclusion

Finally, the open high low approach is one of the most often used tactics, with many seasoned traders using it daily. However, if you are a beginner, you should try using consulting services before executing trading strategies. Dealmoney will provide you with the requisite advice to help you become an experienced trader.