Trading With CrossOver And BB

[SavantGarde]

Hi Lancer,

Stochastic Is Something I Wasn't Ready To Discuss Yet, Till Guys Had Enough Understanding Of Entities Being Discussed In Crossover.

Stochastic Is Something That Can Give You Signs For Early Exit & Entries

Happy & Safer Trading

SavantGarde

Hi Savant,

Thanks for the reply. Please elaborate what other indicators are to be used when dealing with a big lot size so as to optimize the risk ? I do understand that market has a habit showing *Whipsaw* that defies all indicators.

Wishes,

Lancer.

 

[scorpio77]

HI Savant,

Now that you mentioned it, I came across Stochastics a few days back and have been monitoring it in this week's trading. The results have been quite promising. It is much better than RSI at the moment.

Hi Lancer,

Stochastic Is Something I Wasn't Ready To Discuss Yet, Till Guys Had Enough Understanding Of Entities Being Discussed In Crossover.

Stochastic Is Something That Can Give You Signs For Early Exit & Entries

Happy & Safer Trading

SavantGarde

 

[lancer]

Hi Lancer,

Stochastic Is Something I Wasn't Ready To Discuss Yet, Till Guys Had Enough Understanding Of Entities Being Discussed In Crossover.

Stochastic Is Something That Can Give You Signs For Early Exit & Entries

Happy & Safer Trading

SavantGarde

Hi Savant,

Thanks for the intro to new indicator.

These are the parameters that I have got a decent hold over right now.

1. 4/5 and 5/6 SMA crossover.
2. BB (9,2) piercing.
3. Formation of Bullish and Bearish candlestick pattern.

This indicators do reflect the trend and given the lessons by by you, I do understand that it is more prudent to go with the trend than speculating it and waiting till eternity to menifest.

*Stochastic Oscillator (Fast, Slow, and Full)* as I understand from the lessons available on net ....

Developed by George C. Lane in the late 1950s, the Stochastic Oscillator is a momentum indicator that shows the location of the current close relative to the high/low range over a set number of periods. Closing levels that are consistently near the top of the range indicate accumulation (buying pressure) and those near the bottom of the range indicate distribution (selling pressure).

A whipsaw occurs when a buy or sell signal is reversed in a short time. Volatile markets and sensitive indicators can cause whipsaws.

Now, how to go about it, using Stochastic Oscillator for Intraday trading ?

Here in the attched chart, I have used ( S,3,5,3 ) and it does give a clear indication of trend reveral on 20 % oversold and 80 % overbought zone to expect a whipsaw, before or after confirmation of other indicators like SMA cross over, and BB piercing. Are the five horizontal lines the correct indicators for SAR ?


Wishes,

Lancer.

 

[SavantGarde]

Hi Lancer,

Keep The Stochastic Settings As (5,3,3) With Either SMA Or EMA Or (5,3,4)

Happy & Safer Trading

SavantGarde

 

[lancer]

Hi Lancer,

Keep The Stochastic Settings As (5,3,3) With Either SMA Or EMA Or (5,3,4)

Happy & Safer Trading

SavantGarde

Hi Savant,

Thanks. Please tell me if I have got you right, as regards to the Stochastic settings.

1. Simple OR Exponential Average Period :- 5 ( As we are using SMA 4/5 or 5/6 )

2. % K Period :- 3

3. % K Slow :- 3 or 4.

4. B/S :- 80/20.




Wishes,

Lancer.

 

[scorpio77]

Hi savant,

Would this be the same for NF and BNF? I am currently using the default values on my charting which is 15, 3, 5 for full stoch on a 10 min chart. Thanks.

Hi Lancer,

Keep The Stochastic Settings As (5,3,3) With Either SMA Or EMA Or (5,3,4)

Happy & Safer Trading

SavantGarde

 

[mogembo]

Hi Lancer,

Keep The Stochastic Settings As (5,3,3) With Either SMA Or EMA Or (5,3,4)

Happy & Safer Trading

SavantGarde

Is the above said stochastic settings for Swing trade or intraday ??

 

[vanram]

Mr. Savant,

I think your original idea was to create "a trading system for dumbs"
which should be really simple.

but, here I am seeing people taking entries based on BB, ( which I believe you want to be an exit strategy.)

and now, a new indicator in the shape of stochastics.

so, we have 1) 4&5 or 5&6 cross over, 2) BB 20,2 or 9,2, 3) sma 9 or 20 and now4) stochastics (5,3,3) or With Either SMA Or EMA Or (5,3,4).

what next?

My humble request. as can be seen from the discussions & charts posted earlier, SMA crossover( with occasional help from BB) itself is giving beautiful returns. so, why not fine tune it with proper initial stoploss and profit booking strategies?

I am sorry if I am wrong.

Hi Lancer,

Stochastic Is Something I Wasn't Ready To Discuss Yet, Till Guys Had Enough Understanding Of Entities Being Discussed In Crossover.

Stochastic Is Something That Can Give You Signs For Early Exit & Entries

Happy & Safer Trading

SavantGarde

 

[SavantGarde]

Hi Vanram,

I Am Basically A Positional Trader In F&O And Stay Out When I Don't Like The Way The Market Is Behaving.

Now Coming To The Systems:

a) 4/5 Is Used For Index Futures

b) 5/6 Is Used For Stocks & Stock Futures

They Are Both Very Stable On Their Own, System Was Elaborated To Prasad & Then He Had This Bright Idea Of Whether It Could Be Used For Intraday, Since I Don't Have Real Time Data, Asked Him To Post Charts For Intraday....& Was Quite Surprised That It Did Work Quite Well On Intraday.

BB While It Doesn't Assume A Lot Of Importance For EOD, It Does Have Some Benefits For Intraday....Also What I Noticed For Intraday Was Both SMAs Move So Close To Each Other That Working Out A Separate S/L Is Not Really Required & Both SMAs Inspite of Moving Together Like Friends, Hand In Hand, They Have Very Distinct Personalties....In Relation To Each Other.

Yes....I Like Things Simple & Also Believe That Most Solutions Are Simple As Well....Thought It Would Be A Good Investing & Trading Strategy For Every Level Of Investor Or Trader....& System Elaborated Above Is Sufficient & Efficient By Itself....Without Having To Manually Draw Anything On The Chart.


I Know A Lot Of Guys Have Had A Hard Time Trying To Come To Grips With A System That Has Just A Couple Of Entities....& Have No Intention Of Making It Complicated By Adding Anything Else To It, Stochastic Was Just Mentioned To Lancer, It Is Not Something I Am Looking To Add To Existing Entities Of The System....Infact Quest Is To See If It Can Be Made Even Simpler & Perhaps More Efficient...That's All

Besides, Above 2 Strategy There Is Just 20/50 For Investors With Target & Postion Sizing...& BB (9,2) Is The Only BB Setting For The Above.

My Apologies, If My Mentioning Of Stochastic To Lancer, Has Led You To Believe I Am Adding Extra Entities To An Already Efficient & Simple Strategy.

Happy & Safer Investing

SavantGarde

Mr. Savant,

I think your original idea was to create "a trading system for dumbs"
which should be really simple.

but, here I am seeing people taking entries based on BB, ( which I believe you want to be an exit strategy.)

and now, a new indicator in the shape of stochastics.

so, we have 1) 4&5 or 5&6 cross over, 2) BB 20,2 or 9,2, 3) sma 9 or 20 and now4) stochastics (5,3,3) or With Either SMA Or EMA Or (5,3,4).

what next?

My humble request. as can be seen from the discussions & charts posted earlier, SMA crossover( with occasional help from BB) itself is giving beautiful returns. so, why not fine tune it with proper initial stoploss and profit booking strategies?

I am sorry if I am wrong.

 

[regardson]

Hi Guys,
If you really want to trade without loss, go to pride's intraday strategary. I personally did and only gained no loss...
Here is the link for that

http://www.traderji.com/day-trading/29798-prides-intra-day-strategy-profit-everyday-1.html

tere is a lot of charts too... check it out