How to trade with an oscillator

[timepass]

Days like this teach you the meaning of "stoploss". Also, maybe such days are meant for selling options.

 

[tempest]

Ranga

Here is the chart..
I was hoping that it will also go up..it crosses 21 MA also(as ST bro told that its confirm entry) ...but it didnt went up ..although its very range bound market..

ST ..I am struggling to identify range bound market...How do you identify it

Thanks

Praveen

Hope ST doesnt mind me giving my take so here goes

Right off the bat, your first line is drawn wrong when connecting price lows - look at the vertical lines and you will see the point where the Stoch made higher low, the price also made one ( albeit not as steep)

The second one is correct and I myself took a trade there and made some good profit when the spike happened to circa 4730. Yes the 2:00pm candle almost took my stoploss but it was still a decent bet. I just used more lots and a smaller target.

One must also remember the TF we are dealing with. A 5min TF will give movements in 5 min size moves and it did in this case, so the amount of points one is looking for has to proportionate to the TF. 60 min TF divergences will give bigger moves and so on.

Of course stoploss will have to also be proportionally bigger but that calls into MM more then strict technical plays.

Basically nothing is going to be exact or "work: 100% of the time and we dont need it to be. We just need to make profits and for that we need good MM,RR and plays/system that works more often then not, ie more then 50% of the time. thats it

 

[Smart_trade]

Ranga

Here is the chart..
I was hoping that it will also go up..it crosses 21 MA also(as ST bro told that its confirm entry) ...but it didnt went up ..although its very range bound market..

ST ..I am struggling to identify range bound market...How do you identify it

Thanks

Praveen

Both examples of divergence are incorrect. See to it that when you are considering divergence between the two points, in between the two oscillator does not go in opposite zone ( overbought/oversold ). In my experience the best divergence will not have have the oscillator going over /below 50 % mark in between the two points.

Today the market did not give any pivot above 21 ma and cross that subsequently except in last upmove ....and this long trade was successful.....

Praneen the market goes in sideways move after the trend. Sideways move is identified when you have high and low points and market stays in between these points without breaking either the high or the low. See today's example in Nifty Fut 5 min chart, the market went sideways after making 12:20 high and 12:40 low. It was in sideways till it broke out in 2:40 bar. The best way to trade sideways market is sell near the top boundry and buy near the bottom boundry.

Smart_trade

 

[theartofweb]

This is the code I use in AmiBroker to plot Stochastic oscillator:

_SECTION_BEGIN("Slow Stochastic");
periods = Param( "Periods", 8, 1, 200, 1 );
Ksmooth = Param( "%K avg", 3, 1, 200, 1 );
Dsmooth = Param( "%D avg", 4, 1, 200, 1 );
Plot( StochK( periods , Ksmooth ), "", colorPink, styleLine );
Plot( StochD( periods , Ksmooth, DSmooth ), _DEFAULT_NAME(), colorRed, styleDashed );

PlotGrid( 80 );
PlotGrid( 20 );
_SECTION_END();

How can I modify to have it fill in with some color the region if indicator is in OB/OS area for 5> bars?

Thanks

 

[rangarajan]

Ranga

Here is the chart..
I was hoping that it will also go up..it crosses 21 MA also(as ST bro told that its confirm entry) ...but it didnt went up ..although its very range bound market..

ST ..I am struggling to identify range bound market...How do you identify it

Thanks

Praveen

I had in mind another combination,but yrs is another googly.

 

[rangarajan]

Try http://postimage.org/

http://postimage.org/
I like it because there is no advertising, and it is even easier. Just lay your cursor on the URL for the forum image, press "ctrl>C, and then paste in the forum. So far this site has never been down or gave me any problems.

Can someone pl explain the steps to be followed to post a chart from my computer into my post ,using the above site.( i am com illeterate
i presently use imgur.com

 

[4xpipcounter]

Click "choose file". Afterward go to the picture on your computer you want to upload.
Click "upload it".
Place your cursor over "Hotlink for Forums". It will highlight.
Press "Ctrl and "C" simultaneously.
Go to your post and click "Ctrl" and "V" simultaneously.

Can someone pl explain the steps to be followed to post a chart from my computer into my post ,using the above site.( i am com illeterate
i presently use imgur.com

 

[balasoft80]

Hi ST,
Could you please comment on my question in the below page if your time allows?

http://www.traderji.com/day-trading/30182-how-trade-oscillator-111.html

Thanks
Bala

 

[rangarajan]

Copper to day in MCX.
I am substantiating my statement that Smart's strategy on Stochastic works very well in commodities
the low was 394.9

 

[rangarajan]

Another one in quick succession.Gave one rs in no time. Practice makes perfect.
Smart use to say,see thousands of chart.I am posting,only to find out whether i am making any mistake.