In this Case Study, we are looking at the relevance of Open of the Day in Intraday Trading.
Open of the day is the most ignored aspect amidst our focus on Indicators.
Let us understand the importance of “Open of the Day”.
Your trading chart must have:
” A distinct fat orange-colored line that is always highly visible to never miss.”
- Open Price is the first data tick that culminates into Price.
- Happenings in the media.
- World News related to instruments (Since Prev Close).
In the chart below, we look for the price to cross 2349.55 in Reliance Spot.
This is an image of the Live Market Trading chart presented as a part of the Course.
As the price comes near to the “Orange Line”, one must think it may either take support or provide resistance.
Any cross-over of the “Open Line”, means a distinct change in the outlook of the stock.
Let us see in the chart below, what Reliance did later;
A similar example was found in Nifty Fut Chart when the Nifty Fut took support on the “Open Line” and launched itself upward.
Observe the chart below:
National Aluminum had a prev day Open of 107.70 which seemed a good target having attained 104.95.
The day ended for National Aluminum as above as 107.30.
See the chart below:
Open of the Day, is an underrated analytical tool for many.
It helps us to Summarise the Shifts from One Level to another.
Many aspects of “Open of the Candle” are taken up in the “Trading Candlesticks Course”.
Thank you for reading.