How to trade with an oscillator

[krish4166]

From your chart also, the oscillator did not go in the overbought zone ie band above 80. The qualifiers come later. First the oscillator needs to go above 80....so no sell signal there.

Smart_trade

Once Stochastics goes into OB zone, its effect of yesterdays and todays OS zone more than 5 candles gets nullified.

In my chart till the last candle the oscillator has still not gone into OB region...but if tomorrow it goes into OB zone, stays there for less than 5 bars and comes out, gives a downclose bar and the low of the downclose bar is cracked....that will be a sell signal with swing high as a stoploss.

Smart_trade
03:45 PM 6th june 2011
ST,
My understanding somewhere gone wrong, plz explain where I went wrong.

 

[krish4166]

ST
Plz at your permitted time explain on today's 5 min TF based on osc as still in learning mode

 

[Smart_trade]

Posting ideal trades on Nifty Futures for today (5 min timeframe ). Some trades are on oscillator, some are on some other methods. But all trades have some definate reasons...

Smart_trade

 

[enkaysharma]

U cant make big profits using any indicator. It is ur knowledge and eyes and mind that would put u in profits everyday. I have tried all the indicators but failed. Conclusion--- Master the science of reading chart without any indicator.

 

[Smart_trade]

U cant make big profits using any indicator. It is ur knowledge and eyes and mind that would put u in profits everyday. I have tried all the indicators but failed. Conclusion--- Master the science of reading chart without any indicator.

In a war we need various weapons....we need the khukri and light machine guns for a close fight ...we also need artillary and Bazookas, tanks and rocket launchers....each weapon has its utility and the soldier should know which weapon to use when......

This is a indicators thread. I suggest that you can start a price action thread separately and post how to trade on price action with chart examples....many will be happy to learn.

Best wishes,

Smart_trade

 

[timepass]

.

What is it with your above chart, ST, or are my eyes are deceiving me ? I see a chart for 21/06/2011 and 23/06/2011 .. one session (22/06/2011) seems to be missing..

Also, the data in your chart is also consistent with 21/06/2011...

Please check ....

Posting ideal trades on Nifty Futures for today (5 min timeframe ). Some trades are on oscillator, some are on some other methods. But all trades have some definate reasons...

Smart_trade

 

[Smart_trade]

hmmmm....22rd data got currupt looks like.....

ST

 

[krish4166]

Re: How to trade with an oscillator
Quote:
Originally Posted by Smart_trade View Post
From your chart also, the oscillator did not go in the overbought zone ie band above 80. The qualifiers come later. First the oscillator needs to go above 80....so no sell signal there.

Smart_trade
Once Stochastics goes into OB zone, its effect of yesterdays and todays OS zone more than 5 candles gets nullified.

In my chart till the last candle the oscillator has still not gone into OB region...but if tomorrow it goes into OB zone, stays there for less than 5 bars and comes out, gives a downclose bar and the low of the downclose bar is cracked....that will be a sell signal with swing high as a stoploss.

Smart_trade
03:45 PM 6th june 2011
ST,
http://imgur.com/pkhNN
I am Confused on two of your above statements . plz clear my confusion.
Thanks for your time and patience in answering my queries.

 

[krish4166]

ST,
You have mentioned other methods in the above post, can you post other methods of trading .

 

[murthyavr]

Re: How to trade with an oscillator

I am Confused on two of your above statements . plz clear my confusion.
Thanks for your time and patience in answering my queries.

Krish:

I would like to share what I understood so far:

1. The pre-requisite to get a sell signal is that the Oscillator should first of all go to OB region. Similarly, the pre-requisite to get a buy signal is that the Oscillator should go to OS region in the first place. After that only, you please check for the other conditions - whether they are satisfied or not.

2. The next day's session is supposed to be a continuation of the previous day's trading session. However, due to several reasons, we find gaps in the opening prices. In case the gap is abnormal, the stochastics readings of the next day's session can not be treated as a continuation of the previous day. In such a case, it's better to wait for some time to allow the prices to settle down and then take a trading decision.

3. If the price levels at the open on the next day seem to be a normal continuations of the previous day's trading session, then the stochastics can be relied upon from the beginning.

These are my thoughts. But I request ST to offer his comments on the above.