Intraday trading involves many strategies and approaches. Every intraday trader has a different way of trading and follows a different set of strategies. One of the popular intraday trading strategies that many professional traders follow in the market is open high low strategy.
Open- High and Open-Low is one of the most sensible intraday trading strategies in the market. In this strategy, you buy a stock that opens at the
lowest price of the day and gradually recovers to go up without correcting
again. This suggests that the stock is in positive momentum. Whereas, if a
stock opens up to the highest point of the day and faces selling pressure in
the trading session than the stock is said to be in negative momentum.
What makes this strategy very popular among the traders is that it
gives them the opportunity to trade on both long and short sides. As a trader
you can implement open-high intraday strategy by going short in the stock that is
opening to the high point of day and booking profit when the price falls down.
Similarly, in the open-low strategy you can go long by purchasing stock at the
lowest point of the day and booking profits when the price rises. However, you
must be aware of the fact that no strategy in the market is full proof and
trades can go wrong. It is ultimately your stock picking ability and
implementing the right strategy that will help you in making higher profits.
If the beginners in the stock market want to become a professional
trader they can gain knowledge from articles and blogs on Trading Fuel. We
regularly update the website with latest content and information about the
stock market strategy. What makes us the best is that all blogs and articles are
available at no cost.
