Technical analysis for Profitable Trades Analyzing Open, High, Low, and Close

  1. Technical Analysis
    1. How Technical Analysis Can Help You Make Informed Decisions in Mastering Stock Trading
    2. Technical Analysis Setting Realistic Expectations
    3. Introduction to Technical Analysis and Assumptions
    4. Technical analysis for Profitable Trades Analyzing Open, High, Low, and Close
    5. Candlestick Charts How Line and Bar chart Enhance Market Analysis
    6. Japanese Candlesticks History, Anatomy From Ancient Japan to Global Trading Phenomenon
    7. Time Frames in Technical Analysis Unlocking the Power of Choosing the Right Interval for Successful Trading strategy
    8. Candlestick Patterns How to Identify and Interpret Trading Signals
    9. Marubozu and Bullish Marubozu Understanding What is Essential Single Candlestick Patterns for Traders
    10. Marubozu Candlestick Setting Stop Loss The Ultimate Guide to Trading Patterns
    11. Spinning Top Candlestick Navigating Downtrends A Trader’s Guide to Identifying Reversal Signals
    12. Spinning Top and Doji How to Interpret and Navigating Market Uncertainty
    13. Paper umbrella and hammer candlestick pattern Unlock Profitable Trades
    14. Hanging man candlestick pattern Profitable share market trading Strategies
    15. Shooting Star Candlestick Pattern Boost Your Trading Success Guide
    16. Engulfing Patterns and Bullish Engulfing Signals Unlock Trading Opportunities
    17. Bearish Engulfing and Doji for Trading Success Profitable Strategies with Candlestick Patterns
    18. Multiple Candlestick Patterns Insights and Strategies Boost Your Trading
    19. Bullish Harami Candlestick Pattern for Trend Reversal Strategies
    20. Shorting Guide using the Bearish Harami Pattern Trade Reversals with Confidence
    21. Morning Star Candlestick Pattern and Gap Analysis To Maximise Your Profits
    22. Evening Star Candlestick Pattern Learn How to Identify and Trade to Boost Your Trading Success
    23. Support and Resistance Basics A Comprehensive Guide to Setting Targets and Navigate the Markets with Confidence
    24. Support and Resistance Learn How to Draw and Identify Key Levels Unlocking Trading Opportunities
    25. Support and Resistance Advanced Trading Strategy Analysing Reliability and Optimisation
    26. Volume Trends How to Leverage for Successful Trading Strategy
    27. Volume Analysis A Key Checklist for Successful Stock Trading
    28. Moving Averages A Comprehensive Guide for Trend Analysis in Stock Trading
    29. How to Use Moving Averages for Profitable Trading Strategy and Potential Opportunities
    30. Moving Average Crossover Boost Your Trading Success with A Reliable Strategy
    31. Technical indicators How to Use Technical Tools for Better Decision-Making Unlocking the Power of Trading
    32. Relative Strength Index RSI Analysing Overbought and Oversold Signals to Boost Your Trading Strategy
    33. MACD How to Interpret and Utilize Moving Average Convergence and Divergence for Profitable Trading
    34. Bollinger Bands The Power of Indicators in Trading and checklist
    35. Fibonacci Retracements Unravelling the Power in Stock Markets
    36. Mastering Fibonacci Retracement A Step-by-Step Guide for Effective Trading
    37. Dow Theory Decoding Unveiling the Principles of Technical Analysis
    38. Dow Theory Patterns Unlocking Trading Opportunities with Double and Triple Formations
    39. Trading Range Explained chart indicator example strategy Profit from Market Ranges
    40. Flag Pattern and Range Breakout How to Capitalise Trading Beyond Boundaries
    41. Risk reward ratio Understanding RRR in Dow Theory
    42. Technical Analysis Tools for Traders Charting Software Guide Enhance Your Trading
    43. How to Select Stocks for Trading Success and Building Your Opportunity Universe
    44. Short Term Trading Unleashing the Power of Scalping Strategies
    45. ADX Indicator and 7 more indicator tools for Trend Strength Analysis
Marketopedia / Technical Analysis / Technical analysis for Profitable Trades Analyzing Open, High, Low, and Close

The Trade Summary 

There are millions of trades that take place in a day. It becomes difficult to track each and every stock. Therefore, a trade summary tracks the Open, high, low, and close.

Now, let’s understand this in detail

The Indian stock market is open for 6 hours and 15 minutes, from 9:15 AM to 3:30 PM. During this time, millions of trades take place. For any single stock, an exchange of shares is carried out every few minutes. Do we, as market participants, need to follow all the different price points that a deal is struck at?

To further illustrate this, let us look at this imaginary stock in which trades exist. See the picture; each point is a trade transacted during a certain moment. If one plots a graph from 9:15 AM to 3:30 PM with every second taken into account, there will be numerous points, and the chart would appear jumbled up.

The market was open from 9:15 AM till 3:30 PM, and it was filled with numerous trades. It’s almost impossible to follow every single price point. Thus, a basic overview of the trading behaviour is preferable rather than focusing on minutiae.

In order to get a comprehensive picture of price movements, we should track the Open, high, low, and close.

Open Price – When the markets open for trading, the first transaction that occurs is known as the opening price.

  • The High Price – This is the most expensive rate a trade was made for during the day.
  • The Low Price- This signifies the least expensive rate at which a deal was carried through that day.
  • The Close Price- It is one of the most influential figures in the daily market. This final rate at which trading ceases for a particular day indicates intraday strength and a benchmark for future movements. 

A higher closing figure than the open signals profitability, while lower numbers point to a negative outcome. We will discuss this subject further as we progress through this module.

At the end of the trading day, closing prices can indicate the market sentiment and act as a benchmark for the following day’s trading. This makes closing more significant compared to opening or high and low prices.

The main markers for technical analysis are open, high, low, and close prices. Plotting and analysing them on the chart is necessary.