Open High Low Strategy

This is a very simple, yet effective and to some extend widely followed scalping strategy to capture the underling sentiments of the counter whether it will go up or down.

What is it?

This is Open-High-Low (OLH) strategy.
As you already aware of Candlestick patterns, there is patterns called as Marubozu patterns where the sell wick or buy wick either ceases to exists (or very small). This is exactly in the same principle.

In OLH strategy: The buy signal appears when the Open Price is the Low Price. It means if you draw the candlestick , there is no bottom wick. So after the opening of the candle, the demand drives the price up to the level, some selling may or may not come and closes in green. This indicates a strong upward biasness of the underlying counter.

Similarly, a sell signal appears when the Open price is the High Price. It means there is no upper wick. So there is no buying pressure, since the opening of the candle, sellers are in force and pulls down the price to a closing.

This strategy generates the signal at the close of the candle (technically barstate.isconfirmed). Because until the bar is real-time there is no option to know the final closing or high. So you will see the bar on which it generates the buy or sell signal is actually indicates the previous bar as OLH bar.

To determine the Stop-Loss, it uses the most widely known SL calculation of:
  • For buy signal, it takes the low of the last 7 candles and substract the ATR ( Average True Range ) of 14-period.
  • For sell signal, it takes the high of the last 7 candles and add it to the ATR ( Average True Range ) of 14-period.
  • One can plot the SL lines as dotted green and red lines as well to see visually.
  • Default Risk:Reward is 1:2, Can be customizable.

What is Unique?

Of course the utter simplistic nature of this strategy is it's key point. Very easy and intuitive to understand.
There are awesome strategies in this forum that talks about the various indicators combinations and what not.
Instead of all this, in a 15m NSE:NIFTY chart, it generates a good ~ 47% profit-factor with 1:2 Risk Reward ratio. Means if you loose a trade you will loose 1% of account and if you win you will gain 2%. Means 3 trades (2 profits and 1 loss) in a trading session result 3% overall gain for the day. (Assuming you are ready with 1% draw down of your account per trade, at max).


This piece of software does not come up with any warrantee or any rights of not changing it over the future course of time.
We are not responsible for any trading/investment decision you are taking out of the outcome of this indicator.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.


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