How to trade with an oscillator

[Suraj]

Dear ST,
i have attached today's 5 Min Nifty Future chart. The point A, B & C are entries using Stoch.
1) Trade A was a short at 5023 with SL of 5033. It hit SL. Lost 10 points.
2) The next trade B was short below 5037 with SL 5051. The market seemed to be sideways. So decided to take profit at 15 points.
3) The trade C was again a short below 5023 with SL at 5043. Again since market was sideways decided to take profit at 15 points.
4) there were couple of buy signals but decided not to take those since the trend on larger time frame and last couple of days was downwards. Was i right?
5) At around 2:15pm noticed more than 40 points difference in VWAP and NF. But i was already out of my short trade. Ideally i should have gone short below the bar Point D. The NF broke the trendline at that point.
6) Should have added at E and again at F

I know i should have done much better than this. Lost out because i was not sure of my entries.

I would kindly request you to give your observations on my trades..the ones i took and the ones i missed!

I would really be obliged if you could give you inputs regarding how you would have traded today assuming that we use only Stoch, Trendlines, breakouts and ofcourse pivots..

http://s6.postimage.org/6j3ewucu9/Nifty_Fut_17th_Nov_2011.jpg

Thanks & best regards
Suraj

 

[Relativity]

good news for 2moro
gold is coming down
http://postimage.org/image/heh5fblkv/

 

[rangarajan]

Dear ST,
i have attached today's 5 Min Nifty Future chart. The point A, B & C are entries using Stoch.
1) Trade A was a short at 5023 with SL of 5033. It hit SL. Lost 10 points.
2) The next trade B was short below 5037 with SL 5051. The market seemed to be sideways. So decided to take profit at 15 points.
3) The trade C was again a short below 5023 with SL at 5043. Again since market was sideways decided to take profit at 15 points.
4) there were couple of buy signals but decided not to take those since the trend on larger time frame and last couple of days was downwards. Was i right?
5) At around 2:15pm noticed more than 40 points difference in VWAP and NF. But i was already out of my short trade. Ideally i should have gone short below the bar Point D. The NF broke the trendline at that point.
6) Should have added at E and again at F

I know i should have done much better than this. Lost out because i was not sure of my entries.

I would kindly request you to give your observations on my trades..the ones i took and the ones i missed!

I would really be obliged if you could give you inputs regarding how you would have traded today assuming that we use only Stoch, Trendlines, breakouts and ofcourse pivots..

http://s6.postimage.org/6j3ewucu9/Nifty_Fut_17th_Nov_2011.jpg

Thanks & best regards
Suraj

Just my analysis,but Guruji is final.
As per Stoch methodology of Smart,no trade today in NF. Why:
Only at 10.55%K was 76 & close 5022.
11.55 bar closed at 5018.15 & Low also same.
Low broken at 13.2,but stoch %K very near O/S zone 22.
Hence No Short.
Positive Divergence bet 12.00 to 13.20,but trend -ve & hece no trade.
But,Trade is an art & not science or maths.
Let us learn from Smart & murthy or others.
Thanks for posting the chart & initiating discussion.
By the way,u r using free S/w or paid pl.I see a continuation from previous days.

 

[rangarajan]

can i get that hole pdf file ???, it may help me. unless i read the hole thing, there will be confusion
thanks

Pl go thro post 836 of murthy.Link is there

 

[murthyavr]

Just my analysis,but Guruji is final.
As per Stoch methodology of Smart,no trade today in NF. Why:
Only at 10.55%K was 76 & close 5022.
11.55 bar closed at 5018.15 & Low also same.
Low broken at 13.2,but stoch %K very near O/S zone 22.
Hence No Short.
Positive Divergence bet 12.00 to 13.20,but trend -ve & hece no trade.
But,Trade is an art & not science or maths.
Let us learn from Smart & murthy or others.
Thanks for posting the chart & initiating discussion.
By the way,u r using free S/w or paid pl.I see a continuation from previous days.

Dear Suraj/Rangarajan,

Please don't keep me on a higher pedestal, because I am also a beginner.
May be, I started the journey a little earlier and still has got a lot to learn.

I usually answer some of the standard questions, to ease the burden for ST.
He must have been tired after answering several questions of same type!

Stoch alone can not give you any trades (it may - but results can't be uniform).
This has to be mixed with various other things - most fundamental among
them is Support and Resistance.

So, if you are looking at Stoch as an All-In-One solution, please stop looking
at it like that at this level.

I suggest you go through the following to get an overall idea of trading:

* ST's Thoughts on Day/Swing Trading thread

* Saint's "Teach a man to fish.." pdf book

* Few standard books on Technical Analysis (Martin Pring/Edward&Magee/
John J Murphy etc)

Day trading is the most difficult among various types of trades and unless you
have an encompassing idea about the market behaviour coupled with uncanny
skill of acting quick, it's that much more difficult!

Best wishes,

 

[Smart_trade]

Dear ST,
i have attached today's 5 Min Nifty Future chart. The point A, B & C are entries using Stoch.
1) Trade A was a short at 5023 with SL of 5033. It hit SL. Lost 10 points.
2) The next trade B was short below 5037 with SL 5051. The market seemed to be sideways. So decided to take profit at 15 points.
3) The trade C was again a short below 5023 with SL at 5043. Again since market was sideways decided to take profit at 15 points.
4) there were couple of buy signals but decided not to take those since the trend on larger time frame and last couple of days was downwards. Was i right?
5) At around 2:15pm noticed more than 40 points difference in VWAP and NF. But i was already out of my short trade. Ideally i should have gone short below the bar Point D. The NF broke the trendline at that point.
6) Should have added at E and again at F

I know i should have done much better than this. Lost out because i was not sure of my entries.

I would kindly request you to give your observations on my trades..the ones i took and the ones i missed!

I would really be obliged if you could give you inputs regarding how you would have traded today assuming that we use only Stoch, Trendlines, breakouts and ofcourse pivots..

http://s6.postimage.org/6j3ewucu9/Nifty_Fut_17th_Nov_2011.jpg

Thanks & best regards
Suraj

Suraj, Rangaarajan,Murthy and others,

Please dont elevate me to Guru or Expert status.....I am a trader just like anyone else here. I too have my greed and fear when I pull the trigger and take the trade.....but over the years I have learnt to be in control of these emotions. All credit goes to a few of my teachers who are the finest traders in the market. I appreciate the help which Murthy is giving me here as it becomes very tiring to answer the questions after the hard day's work in trading.

Coming to the trades, trade 1 is incorrect.....as the qualifiers require the oscillator to come out from overbought zone and give a lower close and then it's low to be cracked....all these were never satisfied in trade 1...so no trade there....

Trade 2 and 3 correct on divergence....and since we were trading in sideways zone, cover your short trades near the low of the sideways zone.

In 2:05 bar , the sideways zone low is cracked.....now trade on price action and pivots...go short.....then around 2:20-2:40 we have market in oversold zone for more than 5 bars, also VWAP and NF gap exceeding 35 and increasing.....so dont cover your short trades here...market was indicating that it is going to crash soon....infact add to shorts when 2:40 low is cracked.....and wait till the end to cover your short positions....

If you cover your trades in between and if you see the market going down further, dont hesitate to short even at lower price.....you can keep a small stoploss and take the trade....if not the best price, get in at second best price. Go on smaller timeframe of say 3 min and take a trade with small stoploss ( short 2:57 bar's low and keep a stoploss of high of that bar + 2-3 points filter.) In fast moving markets you have to enter aggressively and keep some tight stops....these fast markets give extremely good RR....

Daytrading is not a relaxed easychair game....it is a jungle law here, you either be a predator or get eaten....Be fast and nimble and you will never loose in daytrading.

Smart_trade

 

[SB2000]

Daytrading is not a relaxed easychair game....it is a jungle law here, you either be a predator or get eaten....Be fast and nimble and you will never loose in daytrading.

Smart_trade

Very true!!!!! Reminds of another quote:

Every day in Africa a gazelle wakes up.
It knows it must run faster than the fastest lion or it will be killed.
Every morning a lion wakes up. It knows that it must outrun the slowest gazelle or it will starve to death.
It doesnt matter whether you are a lion or a gazelle.
When the sun comes up, you better be running.

 

[Suraj]

Thanks for posting the chart & initiating discussion.
By the way,u r using free S/w or paid pl.I see a continuation from previous days.

Thank you for your inputs..
I use icharts paid service

 

[Suraj]

Suraj, Rangaarajan,Murthy and others,

Please dont elevate me to Guru or Expert status.....I am a trader just like anyone else here. I too have my greed and fear when I pull the trigger and take the trade.....but over the years I have learnt to be in control of these emotions. All credit goes to a few of my teachers who are the finest traders in the market. I appreciate the help which Murthy is giving me here as it becomes very tiring to answer the questions after the hard day's work in trading.

Coming to the trades, trade 1 is incorrect.....as the qualifiers require the oscillator to come out from overbought zone and give a lower close and then it's low to be cracked....all these were never satisfied in trade 1...so no trade there....

Trade 2 and 3 correct on divergence....and since we were trading in sideways zone, cover your short trades near the low of the sideways zone.

In 2:05 bar , the sideways zone low is cracked.....now trade on price action and pivots...go short.....then around 2:20-2:40 we have market in oversold zone for more than 5 bars, also VWAP and NF gap exceeding 35 and increasing.....so dont cover your short trades here...market was indicating that it is going to crash soon....infact add to shorts when 2:40 low is cracked.....and wait till the end to cover your short positions....

If you cover your trades in between and if you see the market going down further, dont hesitate to short even at lower price.....you can keep a small stoploss and take the trade....if not the best price, get in at second best price. Go on smaller timeframe of say 3 min and take a trade with small stoploss ( short 2:57 bar's low and keep a stoploss of high of that bar + 2-3 points filter.) In fast moving markets you have to enter aggressively and keep some tight stops....these fast markets give extremely good RR....

Daytrading is not a relaxed easychair game....it is a jungle law here, you either be a predator or get eaten....Be fast and nimble and you will never loose in daytrading.

Smart_trade

Thank you very much ST

 

[rangarajan]

Hidden Positive Divergence of VIP in Cash,twice today.( Stoch L/L,Stock H/L)
Not only that,profitable ATP trade after 3pm also.