How to trade with an oscillator

[timepass]

TP,

Where was an oscillator call at all, on your 30min chart?

%D moved from out of OB region, after staying for 8 bars in OB zone.
So, that was not a signal to sell - as per ST's qualifiers.

The only indication, according to me was the price action. If you take 30min
chart, it made a low (9:45), couldn't make a higher high, instead - made a
lower low (12:15). With this, the uptrend was doubtful.

On a 5min chart, the stoch gave a clear sell signal at 13:15 and yes! it was
the ultimate 140+ points signal !!

Somewhere in this thread there is a mention of "Hook" on the oscillator. I think Poortrader also has some posts about it.

 

[murthyavr]

Somewhere in this thread there is a mention of "Hook" on the oscillator. I think Poortrader also has some posts about it.

Unfortunately, if you traded on 5min chart with this hook on 30min chart,
chances were there for getting stopped out - unless you kept the SL very far
away.

But if you traded the hook on 30min TF itself, well - it was a good trade.
(But your SL should be some 55 points away in this case. Which means, you
should be sure of at least 110 points downslide to enter into the trade.)

This hook method always gave mixed results.. Basically, it's a very short term
strategy.

 

[timepass]

Unfortunately, if you traded on 5min chart with this hook on 30min chart,
chances were there for getting stopped out - unless you kept the SL very far
away.

But if you traded the hook on 30min TF itself, well - it was a good trade.
(But your SL should be some 55 points away in this case. Which means, you
should be sure of at least 110 points downslide to enter into the trade.)

This hook method always gave mixed results.. Basically, it's a very short term
strategy.

Boss, I normally don't trade the index, I trade options on minifty and scalp low priced equities for 5-10 paisa trades. I am a scared trader Today the hook formation was accompanied by the 21EMA changing its color to red. So, I took a small trade in minifty for 16 points. I don't know how to calculate the targets and stoploss using the oscillator. So, can you please explain how the SL was 55 points ?

 

[murthyavr]

Boss, I normally don't trade the index, I trade options on minifty and scalp low priced equities for 5-10 paisa trades. I am a scared trader Today the hook formation was accompanied by the 21EMA changing its color to red. So, I took a small trade in minifty for 16 points. I don't know how to calculate the targets and stoploss using the oscillator. So, can you please explain how the SL was 55 points ?

The hook formation was complete with 11:45 candle with a low of 5360.

Immediate PH was at 5410 (10:45).

The difference of the above two plus your filters..

(As per streetsmarts, you can keep the SL on top of the candle confirming the
hook, but chances of getting stopped out even before 3/4 bars are high)

 

[umeshlp]

ST,
I am reading this thread 1st time. It is interesting.
Pl. clarify R:R 2:1 you mentioned here is Risk : Reward or vice versa.
Regards.

These days I am doing scalping on a simple method....I have 13 bars average as the direction in which to scalp....I identify a small bar ( a NR7 or a small inside bar) and if the direction is up,I will buy the breakout of high of that small bar...with SL as low of the bar....and book 1/2 at R:R 2 :1 and balance trailed at low of successive bars...works well,and simple.....

But we can work on it further....

Smart_trade[/QUOTE]

 

[Smart_trade]

ST,
I am reading this thread 1st time. It is interesting.
Pl. clarify R:R 2:1 you mentioned here is Risk : Reward or vice versa.
Regards.

These days I am doing scalping on a simple method....I have 13 bars average as the direction in which to scalp....I identify a small bar ( a NR7 or a small inside bar) and if the direction is up,I will buy the breakout of high of that small bar...with SL as low of the bar....and book 1/2 at R:R 2 :1 and balance trailed at low of successive bars...works well,and simple.....

But we can work on it further....

Smart_trade

[/QUOTE]

Rewards : Risk of 2:1 meaning if your stoploss is at say 10 points from your entry, then you must make atleast 20 points on that trade. In scalping in Nifty options , the risk could be 2-3 points and rewards 4-6 points....

Smart_trade

 

[rangarajan]

Four in one for profit.:thumb:
ADX(21),Stochastic(8,4,3),SMA21

Stoch stayed O/B more than 5bars,ADX >25,+D>-D,SG's Technic combined with Smart,Magnetic SMA(21) with Gap

Both Long & Short gave profit.

As usual,i only Paper Traded.:clapping:

 

[vssoma]

is it right to take a long at this point...

 

[vssoma]

dear,
another chart....can some one pls. explain....is something wrong with my understand...

 

[Smart_trade]

is it right to take a long at this point...

The answer is "yes".

Smart_trade