How to trade with an oscillator

[vikas2659]

@ Rangarajan, can you elaborate more on trading with 21 sma...Do u use pivots above/below that..?? & how u combine stoch with that..??

 

[rangarajan]

Dear Vikas,
Pl search this thread & another one by Smart where he had elaborately explained 21SMA & Stoch trading for intraday.If u r unable to get,i will post it.

I am posting(sorry,could not resist) Nifty 4Hr Chart,clearly showing Negative Divergence,Gaps.

Pl note this is a FREE MT4 Demo & all of u Register & ENJOY for Nifty,FX,Metals,Oil,etc.No delay & excellent.I am experiencing the luxury of MT4 for the first time.

My query to viewers is ,will the Gaps get filled in coming days.This has happened in the past as seen in the chart.

I have added 21SMA,EMA 8 & 2 for trend,Stoch8,3,4

 

[timepass]

Ranga, true, the divergence is quite clear, but the stochs have returned to OB zone without entering the OS zone, so the third bullet may need NF to travel quite high before any retracement.

 

[vinzz]

@timepass
your analysis is good


pls explain what do you mean by "third bullet"

 

[theartofweb]

Hi,

I'd like to ask analysis on the following charts.

Stoc is set %k=8 %D=3 SMA(%D)=4.

Index is German Dax.

1-hour
(stoch stayed OB for 10 bars. It is rebouncing on the 50 line)

2-hour
(stoch stayed OB for 10 bars. It is rebouncing on the 50 line)

4-hour
(almost 10 bars in OB zone)

Daily
(stoch is still in OB zone. Yet, it didn't stay OB for 5> bars previously)

Weekly
(stoch entered OB region 2 bars ago. I guess it is wrong to considering shorting?)

===========

Overall, I must say I recognize heavy bullish pressure. However, is this pressure going to dissipate?

Thanks

 

[rangarajan]

Ranga, true, the divergence is quite clear, but the stochs have returned to OB zone without entering the OS zone, so the third bullet may need NF to travel quite high before any retracement.

Dear timepass,
What is this theory & technique.
Pl elaborate if possible with a chart.

 

[rangarajan]

Link for getting FREE MT4 Demo http://www.xtb.com/

 

[4xpipcounter]

AOW, I could comment a lot further, but I want to stay within the parameters of this thread.
By looking at the weekly, it is clear the market is going to challenge the recent peak at 6433, which is a short ways away. Miscellaneous intermittent R should kick in from the lower TF's, which means, at least temporarily, price should be conveyed into a corrective mode. Strong momentum from the monthly favors the eventuality of the 6433 being taken out, and for the market to climb higher.
OTT, it is hard to elaborate much further and still do this thread justice.

Hi,

I'd like to ask analysis on the following charts.

Stoc is set %k=8 %D=3 SMA(%D)=4.

Index is German Dax.

1-hour
(stoch stayed OB for 10 bars. It is rebouncing on the 50 line)

2-hour
(stoch stayed OB for 10 bars. It is rebouncing on the 50 line)

4-hour
(almost 10 bars in OB zone)

Daily
(stoch is still in OB zone. Yet, it didn't stay OB for 5> bars previously)

Weekly
(stoch entered OB region 2 bars ago. I guess it is wrong to considering shorting?)

===========

Overall, I must say I recognize heavy bullish pressure. However, is this pressure going to dissipate?

Thanks

 

[timepass]

@timepass
your analysis is good


pls explain what do you mean by "third bullet"

Dear timepass,
What is this theory & technique.
Pl elaborate if possible with a chart.

Pardon my drawing skills, but I have tried to illustrate using your own chart. I have tried to illustrate the other possibility.

1) Now, you have noticed the divergence using 2 crossover points (bullets) on stochs coinciding with 2 pivots on the price. It is not a given fact that after 2 such points the bearishness will set in. If the momentum is strong enough, the price may carry on upwards, but if the stochs make another crossover point below the 2nd one, then it makes for the third bullet on divergence.

2) Between bullet no. 1 and 2, the stochs did not go below 30/20, they reverted from the neutral zone. This is a strong signal of trend continuation.

 

[rangarajan]

Pardon my drawing skills, but I have tried to illustrate using your own chart. I have tried to illustrate the other possibility.

1) Now, you have noticed the divergence using 2 crossover points (bullets) on stochs coinciding with 2 pivots on the price. It is not a given fact that after 2 such points the bearishness will set in. If the momentum is strong enough, the price may carry on upwards, but if the stochs make another crossover point below the 2nd one, then it makes for the third bullet on divergence.

2) Between bullet no. 1 and 2, the stochs did not go below 30/20, they reverted from the neutral zone. This is a strong signal of trend continuation.

Dear timepass,
If i have correctly understood Smart's methodology,between point 1 & 2,if the Stoch goes to 20 or near( O/S),it is not correct to call it divergence.
I am unable to catch yr point correctly.