How to trade with an oscillator

[VJAY]

Dear Smart,
Quote:
'But as you pointed out, removing any thread from being "sticky" can be considered if the thread is left halfway and now not many are following it'.

Unquote:

I beg to differ from you as far as removing Saint's 'Teach a man To Fish" thread from Sticky

This is not because i am a Long time admirer of Saint,but because of its value to a beginner & experienced traders alike.
A new comer to this fantastic forum may not be aware of this thread if it is removed & deprived of his privilege to read this.
For such threads,it is immaterial whether the thread starter is active or not but they are stand alone threads unlike oscillators(which u often say).

There may be many other equally valuable threads & one should have no reservation if they are made sticky for the benifit of newcomers & ever beginers like me.

This is just my opinion which i am entitled to i suppose.

When I lost big money in trading(like others ..normal traders) then wander in world of net landed here in traderji...then here too I don't now whats TA /charts etc...bored ...but not left TJ...after 6-8 months only came to thread of saint sir's how to fish....That changed all my concepts of trading...strugled .....then after 2 years only I started to get profits from trading......So I recommend some of threads in the top..specialy saint sirs HOW TO FISH...to guide newbies in this wonderland

 

[rangarajan]

Dear Vjay,
you are not an exception either in losing money or learning from Saint for New horizons. In fact,learning & understanding what is Rally,Trend,Pivot,etc,etc.
He had the immense patience to answer lot of stupid questions from so many viewers.
Now Smart & 4xpip are continuing his legacy of educating,however basic(i refer mine) the queries are with the same patience.

Thank you.

 

[trade4joisar]

I am going through Saint's thread & creating PDF documents contains all important discussion & learnings.

I am having 1 difficulty here, I think most of the places charts links are not available.
Anybody here put relevant charts (replacing ? image) here (i mean not the said scrip but relevant to discussion) ?

https://skydrive.live.com/redir.asp...rid=2995AFAFC91B329A!129&authkey=rRqPYeBES4Q$

 

[theartofweb]

Please, ST Sir, I don't have the ability to obtain time frames minor then daily on NIFTY. The images below are about Dax German index. Could you please provide stoch oscillator analysis about them?

Indicator is set as following:

%K period = 8
%D period = 3
SMA(%D) = 4
Iper buy = 80
Iper sell = 20
Moving Average style = simple

Below, I propose my analysis, to see if I understand your methods

=================================================

Here is Dax Index 5-min tf:

In the 5-min chart I realize that at the end of last trading session, stoch went OB (I am focused mostly on the slow yellow line, less whipsaws, as you claimed) and stayed there for more the 5 bars. Amanzigly, today the index did gap-up So, yesterday, the indicator showed the the market was in -blastoff- mode.

Today, in the 10:00 - 11:00 range, the market did a new top and tried to went even higher but did not manage, finally. During the first top the indicator stayed OB for less the 5 bars; in the second up spike (less minor the the first one) the indicator was coming off from the OB zone. Was that clear sign to sell short?

Are there any other signals I may lack the ability to see in the above chart?



Below is Dax Index 1-hour tf:

In the 1-hour chart I have drawn a vertical red line where I believe a new short term cycle began (25th nov). %R and MACD were giving confirming it at that time. Also, as will you see the index took 5 days to go from 5400 to 6100

I see that the stoch went in OB zone quite quickly and stayed there for more the 5 bars (28 nov/29 nov). As I understand, that is a huge bullish signal :thumb: A couple of days later, the indicator went in OB again and stayed there 5 bars. Is that still a bullish signal? From december the 2nd the indicator failed to go to OB zone and a clear divergnecy is quite discernible. Yet, it took price a while to slide.

I am really interested in how to use stoch indicator in cyclic analysis to assess cycles and determine if the market is in the beginning/middle/end of a cycle. I feel really confortable with 1 hour time frame. Having said that, do you think I should try different time frames to assess cycles?

Thanks evere so much :clap:

 

[rangarajan]

Dear Smart,
I am posting today's chart of NF,both 5min & One hr,stoch 8,3,4.
Though,the stoch stayed in o/b from 10.35-11.05,7bars,it did not exceed the high of 4808 made at 10.55.
Remembering the Longer TF,one hr chart did not suggest any Down trend,perhaps a retracement was thought because of o/b in 5minTF.
At 11.10,it formed a Lower pivot,tempting a buy.But the stock fell all the way,forming a H & S pattern also.

Pl discuss,why one should not have gone long on dips esp 11.10 pivot

It also formed +ve Divergence bet 11.45 to 13.05,which also did not pay had one gone long above 4772,13.0hr candle.Ofcourse,at this time the one hr trend was down but for a 20pts tgt,what was wrong in going long in a lower TF anticipating a pull back?

 

[timepass]

Ranga, check the 30 min chart. There is a sort of tweezer top between 10.30-11.30. A big green candle followed by an equal red candle.

For intraday, while 5 min remains the standard TF (I use bollingerworm), i keep on looking at 1 min, 30 min and 60 min charts too, while peeking at the daily occasionally.

 

[4xpipcounter]

What a sweet setup that is!
Unless the upper TF's are showing a complete opposite view, this market is ready to head due south. What I like is the obvious OB condition, which is well into the 90's. The oscillator shot up much quicker than price action did, so it shows a definite loss of momentum. Price action did not respond to your bullish divergent pattern.
Unless there is something I don't know about on your higher TF's, the swing high should contain, and the dip gets taken out.

Dear Smart,
I am posting today's chart of NF,both 5min & One hr,stoch 8,3,4.
Though,the stoch stayed in o/b from 10.35-11.05,7bars,it did not exceed the high of 4808 made at 10.55.
Remembering the Longer TF,one hr chart did not suggest any Down trend,perhaps a retracement was thought because of o/b in 5minTF.
At 11.10,it formed a Lower pivot,tempting a buy.But the stock fell all the way,forming a H & S pattern also.

Pl discuss,why one should not have gone long on dips esp 11.10 pivot

It also formed +ve Divergence bet 11.45 to 13.05,which also did not pay had one gone long above 4772,13.0hr candle.Ofcourse,at this time the one hr trend was down but for a 20pts tgt,what was wrong in going long in a lower TF anticipating a pull back?

 

[rangarajan]

Dear Smart,
I am posting copper chart today(MCX),5minTF& one HR,Stoch 8,3,4.
Due to the +ve Diver in 5TF as marked ,it was a Buy.
However,in one hr,it was negative trend as PH was formed.
Pl discuss whether one could go long in 5TF & it did give good profit & the lot size 1000.
But it is just opposite of NF posted above where no profit.
Similar situation to my knowledge.

Thanks to murthy for giving me exposure to imgur.com & chart posting has become a child's play:thumb::clapping:

 

[rangarajan]

What a sweet setup that is!
Unless the upper TF's are showing a complete opposite view, this market is ready to head due south. What I like is the obvious OB condition, which is well into the 90's. The oscillator shot up much quicker than price action did, so it shows a definite loss of momentum. Price action did not respond to your bullish divergent pattern.
Unless there is something I don't know about on your higher TF's, the swing high should contain, and the dip gets taken out.

Dear 4xpip,
I am unable to follow you.
Do u mean to say that Stoch getting into O/B much before the Stock,esp in 90 is a bearish indication.
But what Smart discussed was more than 5bars in O/B,expect a new high & never short.Speed picks up only after acceleration.So price to follow stochastic.What i am missing?
What about the +ve divergence later.
U r not discussing the longer TF when o/b condn prevailed,encouraging a buy on dip

 

[rangarajan]

Dear timepass,
What is a Tweezer top & how it should be exploited?