How to trade with an oscillator

[4xpipcounter]

Thanks Sunny, but we're all just traders helping each other. It's just one equal melting pot.

I look forward to your findings. Make sure you have a confluence of indications with your stochastics. It will burn you if you try to use it as a standalone.

Thankyou 4x for prompt reply & your effort helping others in such worse conditions
Thanks for boosting my morale also ...I m really feeling proud today after getting such comment from senior like u

For stoch, now I will also try ur settings & some other settings also & will post result

 

[rangarajan]

Infosys cash chart today.
Gave profit both due to O/B & Negative Divergence.
Smart,a small clarification solicited.
Can we trade next day with previous day's divergence .If so,what is the reliable TF in which this divergence to be seen. I am Not referring to EOD chart & only intra of previous day.

 

[Smart_trade]

Infosys cash chart today.
Gave profit both due to O/B & Negative Divergence.
Smart,a small clarification solicited.
Can we trade next day with previous day's divergence .If so,what is the reliable TF in which this divergence to be seen. I am Not referring to EOD chart & only intra of previous day.

Charts are continuous , so if there is no gap open, we can consider divergence from previous day.....but in case of opening gap, the picture may be distorted a little. So in case of opening gap, I will not consider the divergence till first few bars are done and market stabilises.

If you want to see divergences from previous day, go for timefrmes more than 30 min bars. In larger timeframe the distortion due to opening gaps are minimised.

Smart_trade

 

[anjanbm]

Smart Trade,
Good thread to start with, I am lucky to jump here.

 

[techtrader2]

Excellent thread ST.....your stuff is the highest quality stuff available on trading forums...hats off to you!

 

[rangarajan]

Posting NF chart today.
Pl discuss.

The trade failed on two a/c after 14.30 & gave Good profit on long above 4898 at 13.40 bar till 4942.

Stayed in O/B for more than 5 bars(once only).So on retracement,when a pivot low was formed,it was a buy. But ,it was taken out.Only mistake,perhaps could have been,buying above the bar 4924.7,which did not happen.

But i have noted many times,when P/L happens,it goes up.Only oflate,after Smart's comments recently,i have started seeing the bar high.

Secondly,the 14.50p.m factor of diff bet ATP & current price diff also failed.
While every system fails at some time & we talk here of only probabilities,pl discuss,how it could have been traded for future guidance.

 

[rangarajan]

Excellent thread ST.....your stuff is the highest quality stuff available on trading forums...hats off to you!

Techtrader,

I could confidently assure you that if you follow this method of Stochastic combined with Divergence & other other observations made by Smart,90% success is assured.
Though,Smart says in one of his posts that besides this methodology,he uses many other indicators to decide his trade,in my opinion stand alone Stoch & Divergence is yielding results.

 

[Smart_trade]

Posting NF chart today.
Pl discuss.

The trade failed on two a/c after 14.30 & gave Good profit on long above 4898 at 13.40 bar till 4942.

Stayed in O/B for more than 5 bars(once only).So on retracement,when a pivot low was formed,it was a buy. But ,it was taken out.Only mistake,perhaps could have been,buying above the bar 4924.7,which did not happen.

But i have noted many times,when P/L happens,it goes up.Only oflate,after Smart's comments recently,i have started seeing the bar high.

Secondly,the 14.50p.m factor of diff bet ATP & current price diff also failed.
While every system fails at some time & we talk here of only probabilities,pl discuss,how it could have been traded for future guidance.

1) The oscillator stayed in OB zone for 9 bars...and the bullish force exhausted itself. On the dips if we had waited for Pivot High to be taken out, it would have ensured that we have resumed a short term uptrend. Today was a day where no clear trend emerging throughout the day because of EU events.

2) If you read my post on VWAP, I have clearly said that after 2:30 the difference in NF and VWAP should be more than 35 and next few bars should build on this difference. In todays case just 2:30 bar was above 35 but immediately from next bar bulls lost the grip and the difference crashed....

Today was a day with no clear trend emerging...though we had small moves which were tradeable.

Smart_trade

 

[rangarajan]

Divergence - I stumbled upon this while Goggling.May be useful. At least i am obsessed with this methodology.

http://www.traderslaboratory.com/fo...-relative-strength-internal-3.html#post122770

But my confusion is that there exists many Momentum oscillators,RSI,Stochastic,CCI,etc.All have Divergence.Even Smart has mentioned about them in one of his posts.
But which is more Reliable & Popular.Any comparisons exist,advantages & disadvantages of each.Or is it individual's preference.Which should be a Layman's choice like me.Will they show conflicting signals?

 

[rangarajan]

This sentence may be useful while observing Divergence

' Always mark a bearish divergence with peaks and a bullish divergence with troughs. '