How to trade with an oscillator

[Smart_trade]

Ah...surprised to see sudden breakout in the interest in this thread...just give me some time,will reply to each post....

Best wishes to all...

Smart_trade

 

[Satyen]

Ah...surprised to see sudden breakout in the interest in this thread...just give me some time,will reply to each post....

Best wishes to all...

Smart_trade

Dada Break out, should look at vollume if this break out will sustain or not ......
Any way even if this break out fails it will still be a nice thread to learn every time like itc

 

[Smart_trade]

OK....here we go....posting today's (08-09-2009) 5 min Nifty Futures chart...with trade locations marked on them....

The following is the way I trade on oscillator....

1) At opening and 1-2 bars...the oscillator had stayed in OB zone for more than 5 bars....so we were in buy mode...buy when the 5 min pivot high is taken out...

2) I use oscillator to define the environment,trend,and places whete to get in and out,

3) I take signals only once the oscillator goes in OB or OS zone...dont trade in neutral zone.

4) Price is my main indicator...osc in OS zone,we are in buy mode but the price has to take out the previous bar's high to show that the upmove has started.

5) After mkt stays in OB zone for more than 5 bars...it is strong...I buy every dip and if there is no chart based pivot low stoploss,I keep a stoploss of 20 points...a strong market never declines more than 20 points to hit the stops...if they do...I am out...

The chart will answer most of the querries....

Smart_trade

 

[Smart_trade]

ST Sir,

two questions.

1. Considering long, once the stoch stayed in overbought for more than 5 bars, makes a pull back to neutral zone, indicates further run (as per DeMark). Where will be the next entry point for long... (for those who missed the first long run? Do we need to wait till another crossover of %K over %D in neutral zone or we shouldn't enter at all..?

2. My earlier question regardin trailing stop.. Do we have to follow any rules..??

thanks
VK

Hi VK....

1) Strong market does not give too many opportunities to enter...so after market stays in OB region for more than 5 bars,I want to buy every dip...and keep a stoploss of 20 points if there is no Pivot low stop nearby...you can buy break of pivot highs,break of previous bar's high etc...but your stops go that much further...in strong markets I must get in as early as possible.

2) Trail the stops on clear cut pivot lows...but once it goes in OB zone again and starts printing hammers and dojis...take profits. I have marked the trailing stops on todays chart for you...hope you will find it useful...

Best wishes,

Smart_trade

 

[vishalalluri]

OK....here we go....posting today's (08-09-2009) 5 min Nifty Futures chart...with trade locations marked on them....

The following is the way I trade on oscillator....

1) At opening and 1-2 bars...the oscillator had stayed in OB zone for more than 5 bars....so we were in buy mode...buy when the 5 min pivot high is taken out...

2) I use oscillator to define the environment,trend,and places whete to get in and out,

3) I take signals only once the oscillator goes in OB or OS zone...dont trade in neutral zone.

4) Price is my main indicator...osc in OS zone,we are in buy mode but the price has to take out the previous bar's high to show that the upmove has started.

5) After mkt stays in OB zone for more than 5 bars...it is strong...I buy every dip and if there is no chart based pivot low stoploss,I keep a stoploss of 20 points...a strong market never declines more than 20 points to hit the stops...if they do...I am out...

The chart will answer most of the querries....

Smart_trade

hi st sir have a smaal querie the 3 pm positon of oscillator was in the os region so can we make an prediction abt tomorow market wid dat .

like yesterday 3 30 pm the osc remained in ob region and today morning it continued frm der den went to neutral and den went to ob region

i hope my question is not confusing

 

[Smart_trade]

hi smart trade

was just analysisg the chart of today

beetween 11 and 12 pm the stoch stayed above 80 for 5 bars and then came to below neutral levels for one bar and moved again to 80 levels

and the market blasted off after dat

am i correct in my observation
i have attached the file and encircled the area in the file

chart

kindly post ur chart for today with better signals of todays

and letme kno what else we could figure out in todays chart through chart

Vishal,

Our charts look different...but you are right as per your chart....on my chart and settings,we were in strong OB zone at the start of the session and between 12:00 to 12:45....I have posted the chart...see also the profit booking indications ( mkt in OB area again if long,hammers,dojis...),see the trailing stoploss levels shown in red lines...

Good luck...

Smart_trade

 

[Smart_trade]

IMHO this strategy works in almost all settings of stochastics and TFs. ST Sir is using 8,3 as he found it convenient and this setting was part of another sytem (PRIDE system) discussed in another thread..

ST Sir, correct me if I am wrong.

thanks
VK

It works on all timeframes and settings...but to get the optimum results you have to experiment with various setting...they change over time....presently I find 8,3,4 stochastics setting gives good performance results. It will work on RSI also...try various settings and come to an optimum settings which will cover most signals ....

Smart_trade

 

[Smart_trade]

Vishal,

Is this NIFTY future chart.. I doubt..? I think it is the NIFTY index

Please find below the NIFTY chart for today on 5min TF.

ST Sir, Please advise..

thanks
VK

Well done VK,you have identified sell signal right on dot....

There were many buy signals...I have marked them on my chart....

Great going...

Smart_trade

 

[vishalalluri]

hi st sir

last question for today sorry to ask so many what to do i m novice

i tried puuting some buy and sell at this post

http://www.traderji.com/day-trading/30182-how-trade-oscillator-18.html#post358965

please check this if im on a right direction

thnks in advance

 

[Smart_trade]

hi st sir have a smaal querie the 3 pm positon of oscillator was in the os region so can we make an prediction abt tomorow market wid dat .

like yesterday 3 30 pm the osc remained in ob region and today morning it continued frm der den went to neutral and den went to ob region

i hope my question is not confusing

Vishal,

There is a very vital difference...yesterday the oscillator was in OB region till the end....showing strong upmove coming...today it went below OS zone and came out in less than 5 bars...so it is indicating a sideways market now...no strong up/down move indicated.

Smart_trade