How to trade with an oscillator

[Smart_trade]

ST, thanks for all the wonderful info on this thread. Please can you tell me the difference between Bullish Hidden Divergence and negative divergence? Thanks for your help.

Thanks for the kind words....

There is a difference. In Negative Divergence we have market making higher top and the oscillator making lower tops and this pattern is reversal pattern and is bearish.....here we compare tops ...... in Bullush Hidden Divergence we compare bottoms and the pattern is a bullish continuation pattern.

Smart_trade

 

[Smart_trade]

Hi ST, does this system work with stocks even when stock price is following Nifty with every move?

The method works on any stock which is freely and fairly traded ( meaning no operator driven activity giving sharp spikes on the chart ) and the chart which is orderly and respects pivots/supports/resistances....

Smart_trade

 

[gsam]

The method works on any stock which is freely and fairly traded ( meaning no operator driven activity giving sharp spikes on the chart ) and the chart which is orderly and respects pivots/supports/resistances....

Smart_trade

ST, thank you so much, I guess this knowledge comes with experience? or is there a list of such shares somewhere?

Was today a weird day with that long green bar around 3p.m. in all the shares including Nifty? Would that be an operator driven activity?

 

[Smart_trade]

ST, thank you so much, I guess this knowledge comes with experience? or is there a list of such shares somewhere?

Was today a weird day with that long green bar around 3p.m. in all the shares including Nifty? Would that be an operator driven activity?

Some of the stocks are Telco,Tata Steel, State Bank,ICICI Bank .

Today's 3:00 bar was because of F & O expiry day dynamics.....such bars are rare but as traders we have to understand that anything can happen in the market and we should be prepared with our action plan if something like today happens ......it can happen anytime...very strong move can start from just nowhere and traders get caught on the wrong foot....

Smart_trade

 

[gsam]

Some of the stocks are Telco,Tata Steel, State Bank,ICICI Bank .

Today's 3:00 bar was because of F & O expiry day dynamics.....such bars are rare but as traders we have to understand that anything can happen in the market and we should be prepared with our action plan if something like today happens ......it can happen anytime...very strong move can start from just nowhere and traders get caught on the wrong foot....

Smart_trade

Thank you so much ST for your help. I will try one of these tomorrow with this strategy.

 

[EagleOne]

My dear Krish
I can understand your eagerness as a newbie to know more trading tools. I have no idea how ST might respond to your query, but I will say this: stick with the devil that you know.

Incidently, if you must know, the harmonics trading that I mentioned in my post requires good knowledge of Elliot waves and Febonacci numbers. So, you being new to trading, I would suggest that you stick for a time being to what ST is teaching you here on this thread. It may look simple but it is very, very effective trading tool. Stick to that, make money, and when you have time and honest curiousity then you can always find all the tools - the net is full of them.

I hope that you wouldn't take me as a rude fellow. I wish you very best in your trading.

ST and Eagle one,
It will be gr8 to know more about harmonic trading from traders like you, for the benefit of all new traders like us here plz guide on intraday day and positional trading.

 

[EagleOne]

Thanks for the kind words....

There is a difference. In Negative Divergence we have market making higher top and the oscillator making lower tops and this pattern is reversal pattern and is bearish.....here we compare tops ...... in Bullush Hidden Divergence we compare bottoms and the pattern is a bullish continuation pattern.

Smart_trade

ST, how about posting a chart so as to give us a pictorial demo of this curious phenomenon? Please, take your time - no hurry. Thanks.

 

[Smart_trade]

ST, how about posting a chart so as to give us a pictorial demo of this curious phenomenon? Please, take your time - no hurry. Thanks.

Yes EagleOne...seeing it on chart makes it much easy to understand.

Posting a Nifty Fut 10 min chart. Negative Divergence shown in red and Hidden Positive Divergence shown in green....chart with its markings is self explanatory ....

Smart_trade

 

[Smart_trade]

ST and Eagle one,
It will be gr8 to know more about harmonic trading from traders like you, for the benefit of all new traders like us here plz guide on intraday day and positional trading.

Krish,

You are new to trading .Start with something simple like Oscillators,Trendlines,Moving Averages, Pivots and move on to complex stuff once you master the simple techniques. Harmonic Trading and Eliott Waves are complex subjects and they require understanding cycles,Fibonacchi ,corrections etc so study them later.

Simple methods used consistantly with discipline are sufficient to make very comfortable living in trading so initially concentrate on simple methods/concepts.

Smart_trade

 

[gsam]

ST, For exit, when you say down close bar's low is taken out, does even a shadow meet this requirement?