How to trade with an oscillator

[manikwadhwa]

tata motors 26 april

 

[Smart_trade]

Market being sideways last 3-4 days, oscillators did a good job in identifying trading opportunities in NF and BNF.....

Posting 5 min BNF chart as an illustration....

Smart_trade

 

[Piuvbn]

Dear VK,

Thanks for the kind words. Please feel free to share anything from this thread with your friends. I will be very happy if anyone finds it useful and becomes a better trader using it , as that is precisely the purpose of this thread.

Smart_trade

ST ji stoch as I see have various construction. %D8 3 4(along),%D15 3 3 and superimposed with %K 15 3 please if time permits clarify/give link. Studying very hard to learn and earn through trading,but so far could not develop any methodology. I have reg.Amibroker so can see the indicators.Regards,PR

 

[munde_77]

Market being sideways last 3-4 days, oscillators did a good job in identifying trading opportunities in NF and BNF.....

Posting 5 min BNF chart as an illustration....

Smart_trade

ST Da , Is it the right way to trade with oscillator in sideways market.

 

[munde_77]

tata motors 26 april

:thumb::thumb::clapping::clap::thumb:

 

[Smart_trade]

ST ji stoch as I see have various construction. %D8 3 4(along),%D15 3 3 and superimposed with %K 15 3 please if time permits clarify/give link. Studying very hard to learn and earn through trading,but so far could not develop any methodology. I have reg.Amibroker so can see the indicators.Regards,PR

Hello Piuvbn,


Developing a sound and consistantly profitable methodology is a tough job and it takes time. Once you develop a method, then following that method, discipline, market reading, position sizing etc is the next step which is more tough.....but all successful traders have to go through the same path...there are no shortcuts here . But if you put in efforts, I am sure you will develop a method which will suit your mindset and beliefs which is very essential in trading.

Best wishes,

Smart_trade

 

[Smart_trade]

ST Da , Is it the right way to trade with oscillator in sideways market.

No munde, this chart just shows the trading opportunities. We need not take all trades, we can filter the trades with other methods,such as DeMark qualifiers, taking trades only after pivot is formed and taken out,taking the trades if they are within the support/resistances established earlier etc....but in general oscillators like RSI, Stochastics are great tools for trading sideways markets.

Smart_trade

 

[krish4166]

ST
Applying with tomdemark strategy and stchs osc plse u show in chrts of yesterday's trading in 5 min time frame.

 

[Smart_trade]

ST
Applying with tomdemark strategy and stchs osc plse u show in chrts of yesterday's trading in 5 min time frame.

Krish,

In trading always take trading decisions based on 2-3 methods/indicators.If all point to a particular direction , you have a trade which has much higher probability of success. Trading is a game of probability and stacking the adds in your favour.

I have posted yestarday's (12-05-2011) Nifty Futures chart on 5 min timeframe. The "sell" at the top is not identified on Stochastics if we go with 80/20 band.....but if we consider 70 as overbought reading then this signal is identified. This is a clear sell signal on price action too...

Stochastics staying in OS region for more than 5 bars and bear flag was a reason to take a short trade or add if you have already taken a short trade.....with 1-2 adds, one can cover the short positions at end of the day.

Yesterday was a trending day ....still stoch helps you to define the environment and take a short trade.

Hope the above helps.....

Smart_trade

 

[krish4166]

ST,
In stchs I c two lines on my chart when applied, here in ur chart one single line, is it K% or D% ?