How to trade with an oscillator

[rangarajan]

chart attached

 

[rangarajan]

Dan,
Nice of u to have shared yr experience.
I still feel,the lesser the indicators & discretion,better the chances of winning at least for a Layman like me.
Believe me,i am not trying to Exaggerate or Flatter smart( Whom i do not know),this Stochastic method really works esp for Nifty(only paper trade for me)as it could not be manipulated in restricted sense.
Of course,losses are there but very minimal & repeat No tension. I am fine tuning it with his continuous analysis & inputs.
Is it possible to trade only with Stochastic without seeing the price?
For positional trade,this definitely pays.

 

[murthyavr]

If the scrip has recently taken a breakout after long sideways accumalation, then the signal to go short, though qualified, will give small downward move as the trend has changed to uptrend. Always see the oscillator signals also in the context of overall trend.....trend is the king in the market.

:clapping::clapping::clapping:

Beginners like me tend to think that a positive divergence SHOULD lead to an increase in Price,
and a negative divergence should show falling prices. We, somehow think only mathematically -
ignoring the underlying larger picture.

You have very aptly summarized the whole thing in just two sentences !!

Thanks a lot !!

 

[poortrader]

31st Oct 2011 Stoch Chart of Nifty Spot

@ ST we see that today divergences worked fine, please give your inputs on the following observations
1) since today was a rotating trade in the range so the divergence (in OB/OS zone) worked better as against a gap up where we might need two three divergences even if it happens in OB/OS zone because the pressure is high.
2) what would be best confirming indicators for the divergence ?

Thanx in Advance

 

[rangarajan]

Dear Smart,
I am posting today's 5min chart of NF.There were three opportunities to day.
1) Long>4346,11.oam bar,reached High of 5362 before retracing
2)Short<5350.5,11.40bar,low 5348,S/l 5366,PH triggered:annoyed:
3)Again short<5357,13.35bar low,Low5333.65

All trades were qualified as per theory.Initial short at 11.40 was taken when the Trend was down only. No consolidation for b/out.No bullish divergence. Still failed.
Pl explain,what was wrong.Whether the s/l was correct.Any parameter over looked.

 

[DanPickUp]

Dear Smart,
I am posting today's 5min chart of NF.There were three opportunities to day.
1) Long>4346,11.oam bar,reached High of 5362 before retracing
2)Short<5350.5,11.40bar,low 5348,S/l 5366,PH triggered:annoyed:
3)Again short<5357,13.35bar low,Low5333.65

All trades were qualified as per theory.Initial short at 11.40 was taken when the Trend was down only. No consolidation for b/out.No bullish divergence. Still failed.
Pl explain,what was wrong.Whether the s/l was correct.Any parameter over looked.

Just my two cents as far as I understand what you show:

Taking a position only when Stoch is on a level around plus/minus 40 to 60 on one time frame is not to recommend. Here you need an other indicator or time frame to come in a situation where you can valuate what you may want to do or not.

I personal never take any position when Stoch is on such levels. No clear signal.

ST, you are the boss here, so I also will wait for your comments.

 

[Smart_trade]

I am little tied up in some other things......just give me 2 days and I will reply all the posts as soon as I get some free time.

In the meanwhile people can help others with their answers to their questions.I too learn many new things from others all the time ....so go ahead and discuss....it is your thread.

Smart_trade

 

[doremon]

Hi Smart_trade,

I am a new joinee to this forum. But I have been going thru this forum as a visitor for quite sometime and indeed its a sea of knowledge. I am keen to learn about trading. I have some knowledge about indicators, candlesticks and have tested a few simple systems mentioned in this forum. Read only 1 book till date 'Technical Analysis' by Murphy and have been doing paper trading for past 3-4 months. But I want a more structured approach to my learning so that after sometime (at least 6 months continuosly when I have made good profits) I can trade for living. By the way, I am no college dropout and currently a working professional. Rest assured, this time your experience will not be that bad.

Please guide/ mentor me on how to go about it like which books should I refer, how can I come up with my system, money management, which softwares to use, what should be my monthly target so that I can judge my progress, etc. I want to be on the right track rather than wasting time on useless stuff.

I have seen people sending PMs but I am unable to find that option for me.So, any other way by which I can contact you because some of queries may not be useful to others.

Extremely sorry for off-the-topic post.

Regards,
Doremon

 

[rangarajan]

Today/s NF attached.Stayed in O/B zone for 9bars.
But not much of reward when bought on dips.
Pl analyse where one should have gone long on dips with reasons & s/l.

 

[Smart_trade]

31st Oct 2011 Stoch Chart of Nifty Spot

@ ST we see that today divergences worked fine, please give your inputs on the following observations
1) since today was a rotating trade in the range so the divergence (in OB/OS zone) worked better as against a gap up where we might need two three divergences even if it happens in OB/OS zone because the pressure is high.
2) what would be best confirming indicators for the divergence ?

Thanx in Advance

poortrader,

The best confirming indicator to the divergence is the price itself. It is necessary that after divergence the price has to move in the desired direction. Always remember that the markets can reverse ant time.....and if it reverses, do not get attached to the earlier view......quickly change your position.

Smart_trade