How to trade with an oscillator
- Thread starter Smart_trade
- Start date
Hi ST,
Since last 5 weeks I really did follow this method religiously along with BB and it gave me phenomenal results.Hardly it fails to deliver.
I would like to post charts whenever I get doubt .Pls take your free time to address.
Today first up Stoch stayed in OB for >5 bars . Bought the dip. Areas are marked.
Then sold break of PL at the top. My question is - can we consider that _ve divergence for selling or keep quite during that correction and accumulate the dips?
Here 30 Minutes chart loudly shouts "Buy buy buy"
Pls evaluate my trade .
Regards
Raghav
Since last 5 weeks I really did follow this method religiously along with BB and it gave me phenomenal results.Hardly it fails to deliver.
I would like to post charts whenever I get doubt .Pls take your free time to address.
Today first up Stoch stayed in OB for >5 bars . Bought the dip. Areas are marked.
Then sold break of PL at the top. My question is - can we consider that _ve divergence for selling or keep quite during that correction and accumulate the dips?
Here 30 Minutes chart loudly shouts "Buy buy buy"
Pls evaluate my trade .
Regards
Raghav
Smart_trade
Raghav, Thanks for showing the strength of this system thru your trading and posting various charts on this thread.
As you are trading it, may I request if you can share some case where this approach FAILED. I am sure, there might be cases when it failed as well.
Hope that will help to get us some great experienced observations from ST Da, on what are the factors that could have helped to asses the failure in advance and mange our risk more effectively... or atleast confirmed that mkt is not going to work as per the system.
No hurry,u can take your time.
I am not sure, the price action that we saw today was a failure of this setup. Cause yesterday evening, 30min was throwing perfect buy setup, today morning also the mkt was supporting it.. but by 12.00 pm it took the turn. Was it a contrarian buy signal to recent downtrend in higher Nifty i.e on daily TF /Down trending channel ?
Happy Trading
As you are trading it, may I request if you can share some case where this approach FAILED. I am sure, there might be cases when it failed as well.
Hope that will help to get us some great experienced observations from ST Da, on what are the factors that could have helped to asses the failure in advance and mange our risk more effectively... or atleast confirmed that mkt is not going to work as per the system.
No hurry,u can take your time.
I am not sure, the price action that we saw today was a failure of this setup. Cause yesterday evening, 30min was throwing perfect buy setup, today morning also the mkt was supporting it.. but by 12.00 pm it took the turn. Was it a contrarian buy signal to recent downtrend in higher Nifty i.e on daily TF /Down trending channel ?
Happy Trading
Hi AW10,
It is my pleasure to get the advice from senior people like you.What a coincidence. I also wanted to post todays chart and ask few questions to you and ST for tuning myself. !!Pls correct my interpretations and trading wherever you find one.
Coming to charts.I think regarding the setup failure I personally traded like this.Do not consider this as a failure .Instead felt joy because it told me where to come out.
Further I would say under 30 Minute chart for a swing trader it didn't meet expectations. At the same time under 5 minute chart
1. It gave a small profit if we would have accumulated at end of yesterday.
2.It gave a signal for a big move in the second session.
Pls read my notes along with the chart .
A. 5170 ( Point 1 ) is where we would have accumulated.
B.At point 2 marked in the chart Nifty breaks second pivot high which is a signal of strength. Even I felt 5250 is possible.Also at point 2 Stoch stays in OB for >5 bars.
Then comes the trick.
C. Point no 3 nifty breaks Previous P/L .sign of trouble .I exit as per my personal policy.
D.Then consolidation for next one hour .We are in doubt .We open 30 Minute chart.See where its consolidating .At the bottom of that big red bar marked as candle no 1 and 2 . Time to get out of longs and wait.All in all it gave 1.5 hours to liquidate those longs bought at 5170.Isnt that enough?
E. Lets come back to 5 Min. Point 4 in price bar we have break of LOD .By that time Stoch already made lower high which means we will be looking for an opportunity to SHORT only.
F. Point no 4 stoch stays in OS >5 Bars.Wait for an opportunity to short.
G. Point 6 Both stoch and break of PL confirms shorting.
Result:
a. 5170 -5175 = + 5 points ( Considering I squared off at second consolidation and not at break of PL being conservative )
b. 5166-5155 = +11 points
c. Then 5131-5075 = +56 points
Total = 72 points.
Appending both 5 minutes and 30 minutes chart.
NIFTY 5 MINUTES CHART
NIFTY 30 MINUTES CHART
For highly rational people like you it would have given all signals of reversal at the top without any doubt.
For a new traders AT innitial stage its highly difficult to keep the mind open.They carry a bias and do not listen to chart and get stuck when it comes to reversing the trade.
I liked this system along with BB for following reasons.
1. Entry is always with minimum risk ( RR Ratio)
2. Failure rate is very minimal .say 10-15% ( as per mu exp .ST bro says he is using it successfully for so many years now.Anyway Tiger always does the best of best things)
3. It gives great amount of time to exit in case the trade does not go in our way.
4.Even if I catch One or two big moves with proper position sizing by catching this signal in a week, thats enough.
5.More than that it works both in rangebound as well as trending markets.
My personal Settings are BB(20,9), 20 SMA,Stoch and Volume.
Regards
Raghav
It is my pleasure to get the advice from senior people like you.What a coincidence. I also wanted to post todays chart and ask few questions to you and ST for tuning myself. !!Pls correct my interpretations and trading wherever you find one.
Coming to charts.I think regarding the setup failure I personally traded like this.Do not consider this as a failure .Instead felt joy because it told me where to come out.
Further I would say under 30 Minute chart for a swing trader it didn't meet expectations. At the same time under 5 minute chart
1. It gave a small profit if we would have accumulated at end of yesterday.
2.It gave a signal for a big move in the second session.
Pls read my notes along with the chart .
A. 5170 ( Point 1 ) is where we would have accumulated.
B.At point 2 marked in the chart Nifty breaks second pivot high which is a signal of strength. Even I felt 5250 is possible.Also at point 2 Stoch stays in OB for >5 bars.
Then comes the trick.
C. Point no 3 nifty breaks Previous P/L .sign of trouble .I exit as per my personal policy.
D.Then consolidation for next one hour .We are in doubt .We open 30 Minute chart.See where its consolidating .At the bottom of that big red bar marked as candle no 1 and 2 . Time to get out of longs and wait.All in all it gave 1.5 hours to liquidate those longs bought at 5170.Isnt that enough?
E. Lets come back to 5 Min. Point 4 in price bar we have break of LOD .By that time Stoch already made lower high which means we will be looking for an opportunity to SHORT only.
F. Point no 4 stoch stays in OS >5 Bars.Wait for an opportunity to short.
G. Point 6 Both stoch and break of PL confirms shorting.
Result:
a. 5170 -5175 = + 5 points ( Considering I squared off at second consolidation and not at break of PL being conservative )
b. 5166-5155 = +11 points
c. Then 5131-5075 = +56 points
Total = 72 points.
Appending both 5 minutes and 30 minutes chart.
NIFTY 5 MINUTES CHART
NIFTY 30 MINUTES CHART
For highly rational people like you it would have given all signals of reversal at the top without any doubt.
For a new traders AT innitial stage its highly difficult to keep the mind open.They carry a bias and do not listen to chart and get stuck when it comes to reversing the trade.
I liked this system along with BB for following reasons.
1. Entry is always with minimum risk ( RR Ratio)
2. Failure rate is very minimal .say 10-15% ( as per mu exp .ST bro says he is using it successfully for so many years now.Anyway Tiger always does the best of best things)
3. It gives great amount of time to exit in case the trade does not go in our way.
4.Even if I catch One or two big moves with proper position sizing by catching this signal in a week, thats enough.
5.More than that it works both in rangebound as well as trending markets.
My personal Settings are BB(20,9), 20 SMA,Stoch and Volume.
Regards
Raghav
Last edited:
Raghav.. plz don't stretch yourself to find failure setup.. If you come across them, then u can post them later as well.
My gut feel is that, it will be difficult to find failure of this setup in intraday 5 min chart.. cause mkt sentiments do not take drastic shift in 1 day.
but if you go for 30min 5 days' chart, then it is possible to find failures.
But even if someone has gone long on 30m chart yesteday near the close, he would have stopped out from swing trade today at PL break.
I am not sure, if the buy setup on 30m chart which came yesterday/early today (when mkt stayed in OB zone for 10bar from EOD of day before yesterday till yesterday first half), could be called a failure today.
Will be good idea if you can pull out this signal on 5day, 30m chart and post it here. (sorry I don't have access to charts now).
Let's wait for expert ST's view on this. Hope he will be able to find some time on weekend.
Happy Trading.
My gut feel is that, it will be difficult to find failure of this setup in intraday 5 min chart.. cause mkt sentiments do not take drastic shift in 1 day.
but if you go for 30min 5 days' chart, then it is possible to find failures.
But even if someone has gone long on 30m chart yesteday near the close, he would have stopped out from swing trade today at PL break.
I am not sure, if the buy setup on 30m chart which came yesterday/early today (when mkt stayed in OB zone for 10bar from EOD of day before yesterday till yesterday first half), could be called a failure today.
Will be good idea if you can pull out this signal on 5day, 30m chart and post it here. (sorry I don't have access to charts now).
Let's wait for expert ST's view on this. Hope he will be able to find some time on weekend.
Happy Trading.
I am no expert but because I have trades this method for a long time,some of my observations are as under :
1) This method works very well in sideways market....it gives very good trades in trending markets but we also get a few small whipsaws. When I take a trade on this method, I always keep a stoploss of the nearest swing point...so if I buy my stoploss will be nearest pivot low....if it is hit, bad luck,never mind ...just get out...you may enter again if fresh signal so demands.
2) It achieves an objective of buying low and selling high.
3) When the market stays in say overbought zone for more than 5 bars....it shows that a strong upmove is in the offing...so look to buy....but the move generally tops out in 10-12 bars starting from the bar in which it moved in overbought zone. So the life span of a buy signal when we buy after 5 bars is really 5-7 bars and after around 10 bars I get into profit booking mode and trail the profit booking level to the low of each successive bars.But these 5 or 7 bars will give a good strong move because of momentum already built up.I have seen the move continuing for 15-18 bars also ...but that is rare...
4) Raghav , I see that your entries are a bit late...if the market goes in overbought zone and flips to neutral zone by staying for less than 5 bars in overbought ares, and gives a lower close...make sure it satisfies all entry qualifiers and short the low of the bar in which it gives downclose. From your charts I am not sure you are taking entry at the right place.
5) After a buy entry, keep a stoploss of nearest PL....and add whenever market goes 2-3 bars sideways and breaks out above the top if sideways bars...bring your stoploss to the low of this sideways bars.....add on aggressive pivots and trail stoploss...this was you can actually extract 250 to 300 points from an actual move which is just 100 points....and when the stops are hit in the initial position,you loose 20 -22 points max....it gives a good R/R ratio. Imagine the money one would have made if someone added correctly in the fall we had in today afternoon in Nifty,Bank Nifty etc
6) Try taking trades in the direction of longer term ( if trading 5 min bars, longer timeframe could be 30 min ) this way you will get less trades but much better trades with higher chances of success.
7) Aklways combine this method with a price action based method like pivots, support/resistances etc...
Will try to put up some charts this weekend to illustrate how one could have trades last 2 days on this method...
Best wishes,
Smart_trade
1) This method works very well in sideways market....it gives very good trades in trending markets but we also get a few small whipsaws. When I take a trade on this method, I always keep a stoploss of the nearest swing point...so if I buy my stoploss will be nearest pivot low....if it is hit, bad luck,never mind ...just get out...you may enter again if fresh signal so demands.
2) It achieves an objective of buying low and selling high.
3) When the market stays in say overbought zone for more than 5 bars....it shows that a strong upmove is in the offing...so look to buy....but the move generally tops out in 10-12 bars starting from the bar in which it moved in overbought zone. So the life span of a buy signal when we buy after 5 bars is really 5-7 bars and after around 10 bars I get into profit booking mode and trail the profit booking level to the low of each successive bars.But these 5 or 7 bars will give a good strong move because of momentum already built up.I have seen the move continuing for 15-18 bars also ...but that is rare...
4) Raghav , I see that your entries are a bit late...if the market goes in overbought zone and flips to neutral zone by staying for less than 5 bars in overbought ares, and gives a lower close...make sure it satisfies all entry qualifiers and short the low of the bar in which it gives downclose. From your charts I am not sure you are taking entry at the right place.
5) After a buy entry, keep a stoploss of nearest PL....and add whenever market goes 2-3 bars sideways and breaks out above the top if sideways bars...bring your stoploss to the low of this sideways bars.....add on aggressive pivots and trail stoploss...this was you can actually extract 250 to 300 points from an actual move which is just 100 points....and when the stops are hit in the initial position,you loose 20 -22 points max....it gives a good R/R ratio. Imagine the money one would have made if someone added correctly in the fall we had in today afternoon in Nifty,Bank Nifty etc
6) Try taking trades in the direction of longer term ( if trading 5 min bars, longer timeframe could be 30 min ) this way you will get less trades but much better trades with higher chances of success.
7) Aklways combine this method with a price action based method like pivots, support/resistances etc...
Will try to put up some charts this weekend to illustrate how one could have trades last 2 days on this method...
Best wishes,
Smart_trade
Last edited:
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