(a) Open = High
(b) Open = High = Previous Close
(a) Open = Low
(b) (b) Open = Low = Previous Close
swill talk only about daily / weekly / monthly
O = H is weaker if we compare to OHC (a<b)
O=L is weaker if we compare to OLC (a<b)
refer tweet 1st
in simple words more the price action on all three TF the more powerfull indicator it is if one is missing
if on a monthly TF we get any whether OHC / OLC the trade is initated post the close on 1st day in the direction of the trigger we had .. for eg if O=H we initiate a short
have tried to mark a few such set up on #nifty monthly charts same can be plotted on any other TF (6/n)
these set ups are more visible on Daily TF across underlying but since i am not nifty trader will discuss on nifty only !!
1st a weekly set up and simultaneously daily set up..
since weekly is more powerfull then daily
now comes tricky part.. wht if next day or any day in a week we get a reverse set up do we close down weekly set up..
recent such setup occured on 21st may & gave a decent 200 pointer trade without using much brains (10/n)
very simple as per Risk mgmt system .. generally my preferred wayto find a stop loss
1) 0.25% of trade execution level
2) recent swing high low like on 1st june nifty made a high of 10764 and previous day high was 10764 and recent swing high was 10790.. So trade got executed at 10750 with stops as 10790 with no targets.. only stop loss were revised to carry on less risk
if trading intra then an hourly OHC / OLC or OH / OL would be signal to decide stop loss or booking out of a position...
if trading on daily basis stop loss needs to be adjutsed based on hourly / 30 / 15 min TF
Idea is not to get caught on wrong footing
A STOP LOSS saved is a profit earned
system may give late signal but since i am following a discretionary method the loss should be pre-defined