Open High Low Scanner Strategy

The Open High Low (OHL) Scanner strategy is a trading technique used in the stock market to identify potential trade opportunities based on the OHL of a particular stock. The strategy involves scanning the market for stocks that have opened above their previous day's high or have opened below their previous day's low.

Once a potential trade opportunity is identified, the trader can take a long or short position in the stock depending on whether the stock opened above its previous day's high or below its previous day's low. The strategy is based on the assumption that stocks that open above their previous day's high are likely to continue their upward momentum, while stocks that open below their previous day's low are likely to continue their downward trend.

The OHL Scanner strategy is popular among day traders and swing traders who use it to identify short-term trading opportunities. However, like all trading strategies, it has their limitations and should be used in conjunction with other technical and fundamental analysis techniques to make informed trading decisions.

How to use Open High Low Scanner Zerodha?

Zerodha is a popular discount broker in India that provides various tools and features for traders and investors. One such tool is the Open High Low (OHL) scanner, which can identify potential trade opportunities based on the Open High Low of stocks. Here's a guide to using the Open High Low scanner in Zerodha:

• Log in with your kite account in Zerodha Streak.

• Click on the 'Marketwatch' tab and select 'Screener'.

• In the Screener window, select the 'Pre-defined scans' tab.

• Select the 'Open High Low Scanner' from the list of pre-defined scans.

• Set the filters as per your requirements. You can select the exchange, segment, market capitalization, and other parameters to narrow your search.

• Once you have set the filters, click on 'Search'.

• The Open High Low scanner will generate a list of stocks that meet your criteria. You can sort the list by different parameters such as change, volume, and price.

• Click on any stock to view its chart and other details.

• Analyze the chart and other technical indicators to make an informed trading decision.

• If you trade the stock, you can order directly from the chart window.

Note:

• If you want to use this scanner in Zerodha, you must subscribe to the Streak subscription plan. 

Conclusion

Using the Open High Low scanner in Zerodha is a simple process. By setting the filters and analyzing the generated list, traders can identify potential trade opportunities and make informed trading decisions. However, it's important to declare that the OHL scanner is just one of many tools available. Traders should always use multiple indicators and analysis techniques to minimize the risk of losses.

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