How to trade with an oscillator
- Thread starter Smart_trade
- Start date
Re: How to trade with an oscillator Part 2
Dear Smart,
Posting the chart of VIP today.
Though it was in O/B for more than five bars ,it did not go beyond the previous High & traded in o/s zone.
So,buying around Stoch 60 did not yield profit.
Pl discuss what was wrong & how u would have traded it.
Uploaded with ImageShack.us
Dear Smart,
Posting the chart of VIP today.
Though it was in O/B for more than five bars ,it did not go beyond the previous High & traded in o/s zone.
So,buying around Stoch 60 did not yield profit.
Pl discuss what was wrong & how u would have traded it.
Uploaded with ImageShack.us
Re: How to trade with an oscillator Part 2
ref to my above post:
Searched Previous Part1 & found the following post from Smart in some other but relevent context:
Quote from Smart:
Do not consider any method /technique as infalliable. Price is the king. Always give more importance to price action.
Wrong trade.....after staying in overbought area for 5 bars or more, the oscillator going in the lower band, cancels bullish indication....In fact after that it went near OB area again and that was a sell signal instead of a buy there....
Unquote:
Resolved
ref to my above post:
Searched Previous Part1 & found the following post from Smart in some other but relevent context:
Quote from Smart:
Do not consider any method /technique as infalliable. Price is the king. Always give more importance to price action.
Wrong trade.....after staying in overbought area for 5 bars or more, the oscillator going in the lower band, cancels bullish indication....In fact after that it went near OB area again and that was a sell signal instead of a buy there....
Unquote:
Resolved
Re: How to trade with an oscillator Part 2
After staying for over 5 bars on OB zone, the price and the oscillator dipped down and it made a sideways movement around 11:00 - 11:15 in the chart. We were looking to buy but let the market show that the strength is resurfacing. Let it take out a small pivot high,or make a strong trend bar ( bullish candle) . Instead of that the market went sideways and broke down. This will negate the bullish stance.
It is my experience that if the oscillator after staying in a OB zone for more than 5 bars and dips down...if it goes below 50-45 % then chances of a new top becomes low. So we avoid the trade .
And no technique/ method is 100 % correct. It will always have its share of good trades and few bad trades. If we can save ourselves from bad trades or minimise their impact, that is good for our overall performance.
Smart_trade
Dear Smart,
Posting the chart of VIP today.
Though it was in O/B for more than five bars ,it did not go beyond the previous High & traded in o/s zone.
So,buying around Stoch 60 did not yield profit.
Pl discuss what was wrong & how u would have traded it.
Uploaded with ImageShack.us
Posting the chart of VIP today.
Though it was in O/B for more than five bars ,it did not go beyond the previous High & traded in o/s zone.
So,buying around Stoch 60 did not yield profit.
Pl discuss what was wrong & how u would have traded it.
Uploaded with ImageShack.us
It is my experience that if the oscillator after staying in a OB zone for more than 5 bars and dips down...if it goes below 50-45 % then chances of a new top becomes low. So we avoid the trade .
And no technique/ method is 100 % correct. It will always have its share of good trades and few bad trades. If we can save ourselves from bad trades or minimise their impact, that is good for our overall performance.
Smart_trade
Re: How to trade with an oscillator Part 2
NF in O/B zone,above Stoch 80( setting 8,4,3) for more than 5 bars in EOD chart.
Is New High possible.
Or is this strategy is valid only for 5min TF.
Uploaded with ImageShack.us
NF in O/B zone,above Stoch 80( setting 8,4,3) for more than 5 bars in EOD chart.
Is New High possible.
Or is this strategy is valid only for 5min TF.
Uploaded with ImageShack.us
Re: How to trade with an oscillator Part 2
This strategy works in all timeframes. Market in OB zone after a sustained move of 400 Nifty points has less chances of making a new high than the market move when it is starting. We have also completed Sequential sell signal on Nifty, that has to be kept in mind.
I feel we will have a downside correction now, though the long term bullish bias is still intact.After the correction, we will have another upmove which is certainly likely to make the new high.
Smart_trade
NF in O/B zone,above Stoch 80( setting 8,4,3) for more than 5 bars in EOD chart.
Is New High possible.
Or is this strategy is valid only for 5min TF.
Uploaded with ImageShack.us
Is New High possible.
Or is this strategy is valid only for 5min TF.
Uploaded with ImageShack.us
I feel we will have a downside correction now, though the long term bullish bias is still intact.After the correction, we will have another upmove which is certainly likely to make the new high.
Smart_trade
Last edited:
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