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East Coast Homes (Property management service real estate)   (272 Points)

04 April 2015  
OPEN-HIGH & OPEN-LOW factor when both aresame?.. OPEN - LOW FACTOR.: If Opening Price and Low Price of any Stock OrIndices has been kept with same price including that of decimal point soon after the market opens in any particular day after the 20 minutes ofOpening of trades can be recognized as OPEN-LOW FACTOR for the day. When thisfactor has been framed after the market opens in any specific Stock Or in anyof the Indices, The price will move upward direction only. So, One has to golong in that specific stock or Index preferably nearer to the low price andbook profit as and when the target has been met. One can recognize the targetedprice based on the volatility factor of the specific stock or the index and soon. One can keep the stop loss as thelow price of the stock or the indices for going long in any stock / indices.Suppose if the low price has been broken out one has to cut their long positionimmediately after the violation of the price and should take short positionsoon after the low price get violated. Here, the trader can keep the violatedlow price as upward stop loss. Here, Ones the low factor get violated the priceof the stock or index will drastically come down by applying maximum volatilityfactor over the downside front. OPEN-HIGH FACTOR.: If Opening price andthe High Price of any Stock or Indices has been kept with a same priceincluding that of the decimal point soon after the market opens in anyparticular day after the 20 minutes of opening of trades can be recognized asOPEN-HIGH FACTOR for the day. The moment the factor has been framed the stockprice / the index will go down drastically. So, One Can go Short selling of thespecific stock / indices by keeping the high price as stop loss. Here also Onecan apply the volatility factor for the downside target for the specific stock/ indices. The individual Volatility factor has been available both in NSE andBSE Websites. Here the percentage of volatility can be applied downward eitherwith the previous day's closing price or with the High price of that specificday for arriving the downward target of the stock / indices. At same time, Whena High price is getting violated, one has to cut their short positionimmediately and should take long position by keeping the violated high price asstop loss. Whenever the violation is happening stock price / Indices will endup with double end volatility. Volatility factor of the specific stock has been given on the bottom of the webpage. The volatility has been highlighted as maximum , minimum, and average interms of percentages. So, If someone wants to book minimum profit at veryfrequent intervals one has to choose the minimum percentage and it should beapplied either with the previous days closing price of the stock or with the" Open - Low " or with the "Open High Factor " prices. I hope now traders might have followed the above strategy, how the targetedprice can be met in and how a trader can book profit in a very smart way! If you are a day trader, your position size is likely larger due to the factyou are looking for a smaller move with your short timeframe. Keeping a tightstop is extremely important when trading larger size, as a day trading strategygives stocks multiple opportunities to work. For day trading, the strategy israther simple: Always keep your profit objective at least 3 times greater than what you arewilling to risk. Allow no more than a 1% move against you from your entry point. Ideally, youare in the trade beyond the trend line and out of the trade below it. You canalways get back into the trade if the stock returns to the buy point. If a stock gaps beyond a technical trigger price, the original trade plan isnegated for a day trade so a new plan should be made. If the futures make an intermediate lower high intraday (or higher low whentrading the short side), exit half of your position. This implies a weakeningmarket and can make it tougher for open positions to continue working. If your stock hits a new low for the day (long trades) or new high for the dayif you are short, exit the position. A day trade is intended for initial moves,so there is no purpose in widening stops to accommodate a stock moving in thewrong direction. Get out if the stock breaks a low (or high if short) as youcan reenter the trade if it triggers again. Once momentum fades and buyers are thinning out, take your profit. This can bedone by carefully monitoring the intraday chart and the time & sales Wishing all the traders a very happy trading days ahead by interpreting thismethod. NOTE.: The above factor will work only in the normal course of trading daysonly. At the same time, It never works whenever a positive or negative newsitem or any rumor will appear through any media would change the direction ofthe individual stock / indices price movement in an opposite direction. If Open & Low Price is Equal than go for the Buy with StopLoss Below the Low Price. If Open & High Price is Equal than go for the sell with stop loss Above thehigh price.