Dear Rangarajan,
.
Posting stochastics in earlier chart is for ppl who are indicator followers. Point there was simple trade in waiting, when higher timeframe (here weekly) in oversold condition, focus on some good positive divergence on lower timeframe(here Daily) to initiate trades, using trendlines at price action getting supported by important S/R level from Higher timeframe(here weekly). This is basic simple setup of using multiple timeframes.
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.
Posting stochastics in earlier chart is for ppl who are indicator followers. Point there was simple trade in waiting, when higher timeframe (here weekly) in oversold condition, focus on some good positive divergence on lower timeframe(here Daily) to initiate trades, using trendlines at price action getting supported by important S/R level from Higher timeframe(here weekly). This is basic simple setup of using multiple timeframes.
...
BEML :
You r referring to O/s condn in Daily ( 9/11/2015, 5 Bars, Lowest price 999.25.
But there was also a O/B condn in weekly, 5 bars ,24/7/15, Highest price 1316.9.
But subsequently stock entered O/S domain.
Why I chose this stock for positional was because of Strong ADX in Monthly Uptrend.
In weekly ,it was a disappointment because when O/b, though Adx was raising & Strong, price never exceeded the Highest O/B price & Mirror in O/S daily.
I learnt my Stochastic from Smart & till today,it had paid me good dividends.
If Smart is reading this Post, I would be obliged to know his views as the Stochastic Guru for some of Traderji members & how he would trade these condns.
Today, Beml traded 1312.8
Once again thanks anil Trivedi for your Time & Chart.
I am attaching weekly chart of O/B 5bars
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