Open High and Open Low are terms used in stock trading to describe the behavior of a stock’s strike prices at the beginning of a trading day.
a) Open High: Strike prices that start the day higher than the previous day’s closing prices.
b) Open Low: Strike prices that open below the previous day’s closing prices.
Why Use It?
-> These terms help traders identify strikes with specific price behaviors at the market open.
-> A stock’s price will grow as a result of higher demand if there are more buyers than sellers—that is if there are more buyers than sellers—of the stock. On the other side, a stock’s price will drop if more individuals are selling it than are buying it.
-> Useful for traders looking for potential breakout or breakdown opportunities.
Analysis-> Instrument Overview-> Options-> Open High Open Low
How to Use It?
-> Select the expiry date.
-> Choose the number of strike prices they want to analyze.
-> Filter strike prices based on either Open High or Open Low behavior.
1)What does it mean when strike prices Open High?
-> When strike prices Open High, it indicates that they started the trading day at a level higher than the previous day’s closing prices, potentially signaling bullish sentiment.
2)How can Open High and Open Low information be useful for trading?
-> Traders can use this information to identify stocks with specific price behaviors, helping them make informed decisions about potential entry or exit points in the market.
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