Daily Profits Secret: OHL Strategy + Chartink Screener + VWAP Strategy Revealed

Introduction

This tutorial will guide you through the process of using the OHL strategy, the Chartink screener, and the VWAP strategy for intraday trading. By applying these techniques, you can enhance your trading results and make more informed decisions. Understanding these concepts is crucial for creating your own effective screener tailored to your trading style.

Step 1: Understand the OHL Strategy

The OHL (Open, High, Low) strategy focuses on analyzing the price movements of a stock based on its opening price, highest price, and lowest price during the trading session.

• Identify the Open Price: Check the price at which the stock opened.
• Determine the High Price: Look for the highest price the stock reached during the trading session.
• Identify the Low Price: Find the lowest price the stock reached during the same period.

Practical Tips

• Look for stocks with significant price movement between the open and high/low.
• Consider using historical data to analyze patterns and make predictions.

Step 2: Using the Chartink Screener

The Chartink screener is a powerful tool for filtering stocks based on specific criteria.

• Create Your Custom Screener:

  1. Visit the Chartink website and log in or create an account.
  2. Navigate to the screener section.
  3. Select parameters that align with your trading strategy, such as price movement, volume, and specific indicators.

• Common Parameters to Include:

  • Volume: Look for stocks with high trading volume.
  • Price Change: Filter stocks based on a percentage increase or decrease.
  • Technical Indicators: Utilize indicators like RSI, MACD, etc., for deeper analysis.

Common Pitfalls to Avoid

• Don’t rely solely on one parameter; use a combination for better results.
• Regularly update your screener based on market conditions and your trading goals.

Step 3: Implement the VWAP Strategy

VWAP (Volume Weighted Average Price) is a trading benchmark that gives an average price a stock has traded at throughout the day, based on both volume and price.

• Calculating VWAP:

  1. Calculate the typical price: (High + Low + Close) / 3.
  2. Multiply the typical price by the volume for each period to get the cumulative total.
  3. Divide the cumulative total by the total volume to find VWAP.

• Using VWAP in Trading:

  • Buy when the price is above VWAP, indicating a bullish trend.
  • Sell or short when the price is below VWAP, indicating a bearish trend.

Real-World Application

• Monitor VWAP throughout the trading day to identify entry and exit points.
• Combine VWAP signals with the OHL strategy for more effective trading decisions.

Conclusion

By mastering the OHL strategy, utilizing the Chartink screener, and implementing the VWAP strategy, you can significantly improve your intraday trading performance. Remember to stay updated on market conditions and continuously refine your strategies. Consider exploring additional resources, such as trading courses or tutorials, to further enhance your skills.