How to trade with an oscillator
- Thread starter Smart_trade
- Start date
ST Sir..
As a first step, I compared the same signal on 15 & 60TF. it does not show divergence. Pls confirm if I am making an error on observation. i am attaching charts for the same. the datasource is investbull. Is there any other signal which acts as complementary for entry/exit..?
sorry for asking too many questions..
As a first step, I compared the same signal on 15 & 60TF. it does not show divergence. Pls confirm if I am making an error on observation. i am attaching charts for the same. the datasource is investbull. Is there any other signal which acts as complementary for entry/exit..?
sorry for asking too many questions..
Attachments
SR _TA,
15 min TF gives positive divergence even 60 min gives positive divergence....only thing is 60 min is not in oversold area....( 60 min gave buy signal at 4533 in end July )
See on your charts...if unable to find,I will post 15 and 60 min charts after mkt hours.
Smart_trade
ps: I can see positive divergence even on your charts...positive divergence means the price makes lower bottom but oscillator does a higher/same bottom.
15 min TF gives positive divergence even 60 min gives positive divergence....only thing is 60 min is not in oversold area....( 60 min gave buy signal at 4533 in end July )
See on your charts...if unable to find,I will post 15 and 60 min charts after mkt hours.
Smart_trade
ps: I can see positive divergence even on your charts...positive divergence means the price makes lower bottom but oscillator does a higher/same bottom.
Last edited:
ST DA...u had written on stocastics which i am putting it down here enquote....can u plz explain the same with an example when u r free:
"Just want to add the following qualifiers developed by Thomas DeMark (in New Commodities Timing Methods book) to perfect the entry based on oscillators,which I follow in my trading .These are :
1) The indicator should have come up above the oversold level by remaining less than 5 bars below the level for buy signal,mirror image for sell (this you have mentioned in your post above)
2) It gives an upclose compared to the previous day.
3) On the next bar,upclose days high is taken out on upside then take a buy entry,sell is opposite mirror image.
The above prevents a premature long entry is a strong downtrend and premature short entry in a strong uptrend !!!
Best Wishes,
Smart_trade :
thanks in advance DA
"Just want to add the following qualifiers developed by Thomas DeMark (in New Commodities Timing Methods book) to perfect the entry based on oscillators,which I follow in my trading .These are :
1) The indicator should have come up above the oversold level by remaining less than 5 bars below the level for buy signal,mirror image for sell (this you have mentioned in your post above)
2) It gives an upclose compared to the previous day.
3) On the next bar,upclose days high is taken out on upside then take a buy entry,sell is opposite mirror image.
The above prevents a premature long entry is a strong downtrend and premature short entry in a strong uptrend !!!
Best Wishes,
Smart_trade :
thanks in advance DA
ST DA...u had written on stocastics which i am putting it down here enquote....can u plz explain the same with an example when u r free:
"Just want to add the following qualifiers developed by Thomas DeMark (in New Commodities Timing Methods book) to perfect the entry based on oscillators,which I follow in my trading .These are :
1) The indicator should have come up above the oversold level by remaining less than 5 bars below the level for buy signal,mirror image for sell (this you have mentioned in your post above)
2) It gives an upclose compared to the previous day.
3) On the next bar,upclose days high is taken out on upside then take a buy entry,sell is opposite mirror image.
The above prevents a premature long entry is a strong downtrend and premature short entry in a strong uptrend !!!
Best Wishes,
Smart_trade :
thanks in advance DA
"Just want to add the following qualifiers developed by Thomas DeMark (in New Commodities Timing Methods book) to perfect the entry based on oscillators,which I follow in my trading .These are :
1) The indicator should have come up above the oversold level by remaining less than 5 bars below the level for buy signal,mirror image for sell (this you have mentioned in your post above)
2) It gives an upclose compared to the previous day.
3) On the next bar,upclose days high is taken out on upside then take a buy entry,sell is opposite mirror image.
The above prevents a premature long entry is a strong downtrend and premature short entry in a strong uptrend !!!
Best Wishes,
Smart_trade :
thanks in advance DA
also are you mention it for daily charts? Pl elaborate paragraph(bold)?if using daily the what are the parameters for stoch?
Regards
VJAY
Dear Raj,vjay,
Posting 5 min Bank nifty chart of yesterday (06-08-09) .Here you will see that at point marked as "A", all qualifiers of sell entry are satisfied....they are mentioned on the chart.
At A,the following conditions are satisfied :
1) Oscillator in neutral zone
2) Oscillator has come out from OB zone by staying
for less than 5 bars
3) Downclose compared to close of earlier bar
4) Oscillator not near OS region yet
5) Sell signal on crack of low of bar marked as "A"
The method works well on daily charts and also intraday charts.... Oscillator setting one has to try ...stochastics 8/3/4 works ok...
You have to observe 5 min and 30 min TF continuously....when both agree,the signal is strong if it also gives divergence....
But remember that sometimes some timeframe will not catch the signal...like yesterday Nifty Fut,5 min TF did not catch the sell signal but 30 min TF did...though a bit late....
The method to be used with other methods for better results.....
Best Wishes...
Smart_trade
Posting 5 min Bank nifty chart of yesterday (06-08-09) .Here you will see that at point marked as "A", all qualifiers of sell entry are satisfied....they are mentioned on the chart.
At A,the following conditions are satisfied :
1) Oscillator in neutral zone
2) Oscillator has come out from OB zone by staying
for less than 5 bars
3) Downclose compared to close of earlier bar
4) Oscillator not near OS region yet
5) Sell signal on crack of low of bar marked as "A"
The method works well on daily charts and also intraday charts.... Oscillator setting one has to try ...stochastics 8/3/4 works ok...
You have to observe 5 min and 30 min TF continuously....when both agree,the signal is strong if it also gives divergence....
But remember that sometimes some timeframe will not catch the signal...like yesterday Nifty Fut,5 min TF did not catch the sell signal but 30 min TF did...though a bit late....
The method to be used with other methods for better results.....
Best Wishes...
Smart_trade
D
Dear Raj,vjay,
Posting 5 min Bank nifty chart of yesterday (06-08-09) .Here you will see that at point marked as "A", all qualifiers of sell entry are satisfied....they are mentioned on the chart.
At A,the following conditions are satisfied :
1) Oscillator in neutral zone
2) Oscillator has come out from OB zone by staying
for less than 5 bars
3) Downclose compared to close of earlier bar
4) Oscillator not near OS region yet
5) Sell signal on crack of low of bar marked as "A"
The method works well on daily charts and also intraday charts.... Oscillator setting one has to try ...stochastics 8/3/4 works ok...
You have to observe 5 min and 30 min TF continuously....when both agree,the signal is strong if it also gives divergence....
But remember that sometimes some timeframe will not catch the signal...like yesterday Nifty Fut,5 min TF did not catch the sell signal but 30 min TF did...though a bit late....
The method to be used with other methods for better results.....
Best Wishes...
Smart_trade
Posting 5 min Bank nifty chart of yesterday (06-08-09) .Here you will see that at point marked as "A", all qualifiers of sell entry are satisfied....they are mentioned on the chart.
At A,the following conditions are satisfied :
1) Oscillator in neutral zone
2) Oscillator has come out from OB zone by staying
for less than 5 bars
3) Downclose compared to close of earlier bar
4) Oscillator not near OS region yet
5) Sell signal on crack of low of bar marked as "A"
The method works well on daily charts and also intraday charts.... Oscillator setting one has to try ...stochastics 8/3/4 works ok...
You have to observe 5 min and 30 min TF continuously....when both agree,the signal is strong if it also gives divergence....
But remember that sometimes some timeframe will not catch the signal...like yesterday Nifty Fut,5 min TF did not catch the sell signal but 30 min TF did...though a bit late....
The method to be used with other methods for better results.....
Best Wishes...
Smart_trade
:lol:
Dear Raj,vjay,
Posting 5 min Bank nifty chart of yesterday (06-08-09) .Here you will see that at point marked as "A", all qualifiers of sell entry are satisfied....they are mentioned on the chart.
At A,the following conditions are satisfied :
1) Oscillator in neutral zone
2) Oscillator has come out from OB zone by staying
for less than 5 bars
3) Downclose compared to close of earlier bar
4) Oscillator not near OS region yet
5) Sell signal on crack of low of bar marked as "A"
The method works well on daily charts and also intraday charts.... Oscillator setting one has to try ...stochastics 8/3/4 works ok...
You have to observe 5 min and 30 min TF continuously....when both agree,the signal is strong if it also gives divergence....
But remember that sometimes some timeframe will not catch the signal...like yesterday Nifty Fut,5 min TF did not catch the sell signal but 30 min TF did...though a bit late....
The method to be used with other methods for better results.....
Best Wishes...
Smart_trade
Posting 5 min Bank nifty chart of yesterday (06-08-09) .Here you will see that at point marked as "A", all qualifiers of sell entry are satisfied....they are mentioned on the chart.
At A,the following conditions are satisfied :
1) Oscillator in neutral zone
2) Oscillator has come out from OB zone by staying
for less than 5 bars
3) Downclose compared to close of earlier bar
4) Oscillator not near OS region yet
5) Sell signal on crack of low of bar marked as "A"
The method works well on daily charts and also intraday charts.... Oscillator setting one has to try ...stochastics 8/3/4 works ok...
You have to observe 5 min and 30 min TF continuously....when both agree,the signal is strong if it also gives divergence....
But remember that sometimes some timeframe will not catch the signal...like yesterday Nifty Fut,5 min TF did not catch the sell signal but 30 min TF did...though a bit late....
The method to be used with other methods for better results.....
Best Wishes...
Smart_trade
thanks DA for a very nice explanation....but DA can this be used with BBands and Gimmee bar method to have an extra edge and at times when the signal is a bit late....as gimmee bar gave the same indication of going short too....
awating for ur reply DA....
Dear st,
Thanks for the detailed replay.Am trading in mini and 60 flow.With 60 flow ok but in mini am losing too much nowdays.Unable to do book profit .with 20/30 points.bcaz of am using intial s/l difference for partial profit booking.also unable to getout from trade in properway.toomuch wipsaws now.so continuesly losing.so now trying another indicators with mini for better exit.can I use this oscillator in mini.If you using it in mini please eleborate your some trades .it will helpful to do better in mini
Regards
VJAY
nb:weak in eng so please excuse me.
Thanks for the detailed replay.Am trading in mini and 60 flow.With 60 flow ok but in mini am losing too much nowdays.Unable to do book profit .with 20/30 points.bcaz of am using intial s/l difference for partial profit booking.also unable to getout from trade in properway.toomuch wipsaws now.so continuesly losing.so now trying another indicators with mini for better exit.can I use this oscillator in mini.If you using it in mini please eleborate your some trades .it will helpful to do better in mini
Regards
VJAY
nb:weak in eng so please excuse me.
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