How to trade with an oscillator

[darkstar]

ST sir, I am attaching screenshot of today's end session on 10 TF. I guess it did not give buy signal as oscillator was below 30 for more than 5 bars. I have marked a box on last couple of intervals on 10..

Pls suggest ..
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ST Sir.. My mistake.. Did not follow proper numbers.. Attaching revised image. It shows the reversal signal on 10..

hello sir , r u religare client ! i shft rmoney from religare tomarrow i submit form they offer me odin diet instit of r ally pro offer me 1.5 paisa for trading and 15 paisa for delivery 5 days holding of margin position 1800 rs for open an acount but this 1800 rs will adjusted in your brokrege charges that mean free of charge for open an account pls tell me about u r bkg terms & condition if possible pls show detail waiting for reply.
thanks again for showing nice nifty chart

 

[Smart_trade]

ST sir, I am attaching screenshot of today's end session on 10 TF. I guess it did not give buy signal as oscillator was below 30 for more than 5 bars. I have marked a box on last couple of intervals on 10..

Pls suggest ..
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ST Sir.. My mistake.. Did not follow proper numbers.. Attaching revised image. It shows the reversal signal on 10..

SR_TA,

I can see that the oscillator on 10 min TF remained in OS region for 3 bars and came out...signalling reversal....

Also see 30 min...again indicating reversal,see 5 min TF...it is giving a reversal signal,it also showed positive divergence....

I am having some problem in data download after mkt...so relying on your chart image and my memory....but if in case the 10 min TF oscillator stays for more than 5 bars,it does not mean it will not reverse,but it is not a low risk entry as it is likely to make atleast 1 lower bottom....

Best wishes,

ST

 

[Smart_trade]

ST Sir, you said, you bought NF at 4644.50. What is the reason to buy there. According to me, I would have bought it at crack of 2.55 PH (4661.60 + f ). Please explain so that we can sharpen our skills.

Thanks and regards
Manoj

Manoj,

If you had observed the market action around 4644-42 it was showing tremendous resistance for going down...I remember 2-3 times bears tried hammering it but it bounced back....this indication you can get only if you are a good screen reader....but there are other factors apart from what the screen was showing you....

1) 30 min in OS area

2) 5 min showing reversal,it also showed a positive divergence.

3) NF breaking the downsloping channel.

4) Market Profile indicated possible bottom for the day as 4645-50 area,it went down a little more and reversed

It is always amalamation of 3-4 factors which give us reliable reversal...but the signal one can get on break of downward channel....4644 was a level corrosponding to I had once talked about cotton being pressed into a gunny bag....at some point it refuses to take any more ....

Cannot explain this phenomenon....only screen time and experience will teach you that....but it happens and one can see it in the live market.....

Hope I have answered your querry....

Best wishes,

Smart_trade

 

[TFL]

Manoj,

If you had observed the market action around 4644-42 it was showing tremendous resistance for going down...I remember 2-3 times bears tried hammering it but it bounced back....this indication you can get only if you are a good screen reader....but there are other factors apart from what the screen was showing you....

1) 30 min in OS area

2) 5 min showing reversal,it also showed a positive divergence.

3) NF breaking the downsloping channel.

4) Market Profile indicated possible bottom for the day as 4645-50 area,it went down a little more and reversed

It is always amalamation of 3-4 factors which give us reliable reversal...but the signal one can get on break of downward channel....4644 was a level corrosponding to I had once talked about cotton being pressed into a gunny bag....at some point it refuses to take any more ....

Cannot explain this phenomenon....only screen time and experience will teach you that....but it happens and one can see it in the live market.....

Hope I have answered your querry....

Best wishes,

Smart_trade

Thank you for the explanation, its cunning as always.

I too was expecting a sharp reversal on seeing some bars after 2:35.
But I was not ready for going long at 4644, how you got that point? In my chart channel break is not 4644.
Hope you will clear it.

TFL,

 

[aimer]

thanks DA for the lessons on oscillator...saved me to reverse and put at least something in my pocket...un able to upload the chart right now....but was given the chance third day itself after the 31/07 trading day where the same reversal was seen at the last 30min....thanks Da once again....:clapping:

 

[Smart_trade]

Thank you for the explanation, its cunning as always.

I too was expecting a sharp reversal on seeing some bars after 2:35.
But I was not ready for going long at 4644, how you got that point? In my chart channel break is not 4644.
Hope you will clear it.

TFL,

Hari,

The channel break must have happened at 4660-65 ( not having a chart today in front of me )......4644 only screen experience will tell you....any system will always give late signal....but if not going long,part profit booking around 4640-50 band was called for in view of reasons mentioned in the posts above.

ST

 

[SR_TA]

ST Sr/ Hari bhai..

Are you talking about Bollinger bands? If so, what are the parameters you use? 20/2?

and about divergence, which parameter/indicator you compare with price?

Can you post a chart on the divergence and channel break.. Will be good learning point..

 

[SR_TA]

hello sir , r u religare client ! i shft rmoney from religare tomarrow i submit form they offer me odin diet instit of r ally pro offer me 1.5 paisa for trading and 15 paisa for delivery 5 days holding of margin position 1800 rs for open an acount but this 1800 rs will adjusted in your brokrege charges that mean free of charge for open an account pls tell me about u r bkg terms & condition if possible pls show detail waiting for reply.
thanks again for showing nice nifty chart

Hi Darkstar.. I use Racepro only for charts. However I am looking for broker as I had very bad experience with RMoney in recent time..

 

[darkstar]

Hi Darkstar.. I use Racepro only for charts. However I am looking for broker as I had very bad experience with RMoney in recent time..

when u got broker pls tell me

 

[Smart_trade]

Nifty futures gave a bullish divergence on 30 min chart oscillator at the bottom on 5-8-09 and the market rallied from there....

Smart_trade