Hi! Wanted opinion on the strategy of sell when open = high and vice versa

#1
Hi all,

I was checking the strategy (In Nifty current month futures) of Buying above high of day when Open is very near the Low of the day after 5 min of opening, similarly selling short below low of day when Open is very near High of the day after 5 minutes of open.

I have heard of this strategy many times from different people. But never gave it a thought.

Please advice if this strategy makes sense and if anyone is using this kind of strategy. I plan to keep H / L of current day as SL and 1:2 target (strictly intraday).

I have done some raw testing and found that the phenomena of open = High / low after 5 min of open comes atleast 35% of the days. But I was unable to check what is the actual result.

Please advice
 

amitrandive

Well-Known Member
#2
Hi all,

I was checking the strategy (In Nifty current month futures) of Buying above high of day when Open is very near the Low of the day after 5 min of opening, similarly selling short below low of day when Open is very near High of the day after 5 minutes of open.

I have heard of this strategy many times from different people. But never gave it a thought.

Please advice if this strategy makes sense and if anyone is using this kind of strategy. I plan to keep H / L of current day as SL and 1:2 target (strictly intraday).

I have done some raw testing and found that the phenomena of open = High / low after 5 min of open comes atleast 35% of the days. But I was unable to check what is the actual result.

Please advice
A simple search of the forum yields this result

http://www.traderji.com/advanced-tr...ttern-no-charts-just-excel-13.html#post945532
 

tradedatrend

Well-Known Member
#4
Hi all,

I was checking the strategy (In Nifty current month futures) of Buying above high of day when Open is very near the Low of the day after 5 min of opening, similarly selling short below low of day when Open is very near High of the day after 5 minutes of open.

I have heard of this strategy many times from different people. But never gave it a thought.

Please advice if this strategy makes sense and if anyone is using this kind of strategy. I plan to keep H / L of current day as SL and 1:2 target (strictly intraday).

I have done some raw testing and found that the phenomena of open = High / low after 5 min of open comes atleast 35% of the days. But I was unable to check what is the actual result.

Please advice
When i was very new in the stock market, a gentleman (who was a regular trader, though in small quantity) came to me and began to teach - when open & high same then Short, when open & low same then Long, i listen to him patiently.

Very next day he came running to my colleague and cried - 'Madam Jinc mini me bada nuksan ho gaya (Madam, I lost a good amount in Jinc Mini).

I just smiled.
 

mohan.sic

Well-Known Member
#5
Hi all,

I was checking the strategy (In Nifty current month futures) of Buying above high of day when Open is very near the Low of the day after 5 min of opening, similarly selling short below low of day when Open is very near High of the day after 5 minutes of open.

I have heard of this strategy many times from different people. But never gave it a thought.

Please advice if this strategy makes sense and if anyone is using this kind of strategy. I plan to keep H / L of current day as SL and 1:2 target (strictly intraday).

I have done some raw testing and found that the phenomena of open = High / low after 5 min of open comes atleast 35% of the days. But I was unable to check what is the actual result.

Please advice

Please dont waste your time. This is not worth even to be called a strategy.
 

deba72

Well-Known Member
#6
In TA, out of 4 price points ( O,H,L,C ) , 'Open' price is the least important price and any strategy based on open price has a very high chance of failing.
 

mohan.sic

Well-Known Member
#7
In TA, out of 4 price points ( O,H,L,C ) , 'Open' price is the least important price and any strategy based on open price has a very high chance of failing.
No, please don't say that.

In ( O,H,L,C ) 'Open' is the only constant till end of day.

and How do you decide a Intraday trend ?

Basis for viewing a Intraday trend is "Opening range of the day"

It is not possible to conclude the days trend with the help High/low/previous close. Current days trend can be decided only with Days Opening range compared to live trading price.
 

PUCHU_2500

Well-Known Member
#8
open=high
you must watch prices should not break high level......
open=low
you must watch prices should not break low level....
 

deba72

Well-Known Member
#9
No, please don't say that.

In ( O,H,L,C ) 'Open' is the only constant till end of day.

and How do you decide a Intraday trend ?

Basis for viewing a Intraday trend is "Opening range of the day"

It is not possible to conclude the days trend with the help High/low/previous close. Current days trend can be decided only with Days Opening range compared to live trading price.
"Open" = Constant .. so ? What is the interpretation ? Which indicators / parameters you use in trading whose calculation includes 'open '?
 

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