How to trade with an oscillator

#51
Hi

On the system developed by Pride I have tried using a stop order to get into fast moves in anticipated direction. I have also came across a sys developed by you, which uses a 2 bar hi/lo for entry/exit signals, well dare I say it was tooo fast for me :lol:

Anyway that gave me few ideas, when i present it, you will see there is nothing original about them :rofl:

Concept 1:
On your 2 bar system , can we use the stoch on higher timeframe to filter trades (not sure about 30 Mins was thinking more like 15 mins), the entry/exit will still be 2 bar high/low

Concept 2:
This is very similar to Pride's system but without the EMA, also we add 1 more condition to avoid the multiple crosses on OB/OS conditions

Use the stoch on HTF 15 or 30 as the trade setup

HTF Bullish Condition = K > D and both > 40/30
HTF Bearish Condition = K < D and both < 60/70

Undecided/sideways = K > D but either of them is below 30 or K < D but either of them is above 70.

For entry we use the stoch on 5 mins with same conditions as above.

Will like to get your inputs for the above.

Thanks
Good idea Dhiraj...but still it gives too many trades on a choppy day and we get too many choppy days these days. I added a trend set up qualifier,then some tweaks..but then the method looses its character as a scalping method...it should be very simple and fast decisions that are required in scalping....

These days I am doing scalping on a simple method....I have 13 bars average as the direction in which to scalp....I identify a small bar ( a NR7 or a small inside bar) and if the direction is up,I will buy the breakout of high of that small bar...with SL as low of the bar....and book 1/2 at R:R 2 :1 and balance trailed at low of successive bars...works well,and simple.....

But we can work on it further....

Smart_trade
 

Aqua9

Well-Known Member
#52
Good idea Dhiraj...but still it gives too many trades on a choppy day and we get too many choppy days these days. I added a trend set up qualifier,then some tweaks..but then the method looses its character as a scalping method...it should be very simple and fast decisions that are required in scalping....

These days I am doing scalping on a simple method....I have 13 bars average as the direction in which to scalp....I identify a small bar ( a NR7 or a small inside bar) and if the direction is up,I will buy the breakout of high of that small bar...with SL as low of the bar....and book 1/2 at R:R 2 :1 and balance trailed at low of successive bars...works well,and simple.....

But we can work on it further....

Smart_trade
Dear ST,

Osillators are really working for me, and had good returns today.
Would like to understand more abt wat you are quoting -13 bar avg, and NR7, if any chart example would be really great for beginers like me to understand.

cheers
Aqua.
 

Aqua9

Well-Known Member
#53
Dear ST,

Osillators are really working for me, and had good returns today.
Would like to understand more abt wat you are quoting -13 bar avg, and NR7, if any chart example would be really great for beginers like me to understand.

cheers
Aqua.

Dear ST

Got thru AW10's Thread for NR7 will go the thread completly and post that will ask for if any doubts.

rgds
aqua.
 

bijovyppil

Well-Known Member
#54
I have 13 bars average as the direction in which to scalp....I identify a small bar ( a NR7 or a small inside bar) and if the direction is up,I will buy the breakout of high of that small bar...with SL as low of the bar....and book 1/2 at R:R 2 :1 and balance trailed at low of successive bars...

Smart_trade
St da,
pls explain,which Time frame is used?
 

ag_fx

Well-Known Member
#55
These days I am doing scalping on a simple method....I have 13 bars average as the direction in which to scalp....I identify a small bar ( a NR7 or a small inside bar) and if the direction is up,I will buy the breakout of high of that small bar...with SL as low of the bar....and book 1/2 at R:R 2 :1 and balance trailed at low of successive bars...works well,and simple.....

But we can work on it further....

Smart_trade
I understand that it is 13SMA that you are using. but how do u decide the direction?
If the price closes above 13SMA, then its bullish and vice versa? And then you look for an IB or NR7 and then scalp. Am I right?

Happy Trading
 

scorpio77

Well-Known Member
#56
Hi ST,
Are you using this strategy on Nifty or on stocks? Also what time frame are you applying this on charts? 5 min, 10 min or daily?
Thanks

SCORPIO


Good idea Dhiraj...but still it gives too many trades on a choppy day and we get too many choppy days these days. I added a trend set up qualifier,then some tweaks..but then the method looses its character as a scalping method...it should be very simple and fast decisions that are required in scalping....

These days I am doing scalping on a simple method....I have 13 bars average as the direction in which to scalp....I identify a small bar ( a NR7 or a small inside bar) and if the direction is up,I will buy the breakout of high of that small bar...with SL as low of the bar....and book 1/2 at R:R 2 :1 and balance trailed at low of successive bars...works well,and simple.....

But we can work on it further....

Smart_trade
 

scorpio77

Well-Known Member
#57
HI ST,

Thanks a ton for this input from you, I was able to recover a sginificant bit on my losses today.
Was intially long on the Nifty in the morning, did an SAR on the fall ( although a little late as I was expecting a pull back:(). Sold the short position , on the first movement of the stochs from oversold into neutral zone. Going by the theory, since the stochs had stayed oversold for more than 5 bars, I Shorted again at the next crossover of stochs and the market fell as expected!
Chart attached for reference.

Thanks,

Scorpio

I would like to share an important phenomenon regarding oscillator overbought/oversold conditions. Whenever an oscillator like Stochastics,( or even RSI,ROC etc ) stays above the overbought limit for more than 5 bars without taking a dip from overbought to neutral zone....the market has a lot of steam left further to go up, market then continues upward journey,then comes down,then goes into overbought zone again but shows negative divergence and then only it comes down...till then it keeps making higher tops. This is a very strong bullish signal to trade.....

Mirror image for oscillator staying in oversold region for more than 5 bars...

The above phenomenon was what was happening towards the later part of the session yesterday (26-06-09).... I traded this observation yesterday and thought I will share with all....


Smart_trade
 

Attachments

#58
HI ST,

Thanks a ton for this input from you, I was able to recover a sginificant bit on my losses today.
Was intially long on the Nifty in the morning, did an SAR on the fall ( although a little late as I was expecting a pull back:(). Sold the short position , on the first movement of the stochs from oversold into neutral zone. Going by the theory, since the stochs had stayed oversold for more than 5 bars, I Shorted again at the next crossover of stochs and the market fell as expected!
Chart attached for reference.

Thanks,

Scorpio
Hi Scorpio,

I am glad that you found it useful .....For Scalping I am using Nifty or Bank Nifty 5 min charts...

Best Wishes,

Smart_trade
 
#59
I understand that it is 13SMA that you are using. but how do u decide the direction?
If the price closes above 13SMA, then its bullish and vice versa? And then you look for an IB or NR7 and then scalp. Am I right?

Happy Trading
Dear Ankit,

I use EMA...but SMA is also ok I guess....if the market is above 13 EMA,then identify a small bar or small inside bar and scalp from the long side....13 EMA is only set up for knowing which side to scalp from...long or short....will try to post some examples on the chart....yes...you got it right...

Best Wishes,

Smart_trade
 

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