How to trade with an oscillator

Boss, experience has taught me not to depend on a single oscillator for trading. None is that much reliable. So, I prefer to use two at least, and I use 21EMA, and look at the volumes, and maybe the price's relationship with its ATP. Daytrading is very tricky and the picture sometimes changes in a flash, and sometimes even reverts in a flash, taking out stoplosses on both sides. I remember it happening with SBI some time ago, with a 50-60 rs. movement within 2 minutes. With daytrading, it's better not to look for big profits, simply look for profitable positions.

With DLF yesterday, the low of the big bar (11:35) could have been a stoploss if you had taken a trade early in the morning.



With 21EMA, I have found that when it starts changing color, it's time to be very cautious. A full bar above or below this can be a decider.

For daytrading, I am looking forward to SG's reply to this post in another thread.

Hi ST,
Would really need your help on this.. if you could teach us how to determine that the Pivot high/low was taken out, i also looked in saint's thread but was not able to open any charts probably the thread was closed that may have been the reason.
But yes, if you can teach us that would be really helpful.. in your freetime of course. Thanks a ton,

For stochs, for intraday 5 min TF, can we consider 70 & 30 as OB & OS zone ? Or higher ??

I think this has to changed according to different mkt conditions.
in trending phases if a powerful uptrend is taking place then the stoch wont reach the OS levels if they are at 30 or 25.

Thank you for sharing the information, it was informative post. Lots of misconception about the oscillator has been cleared.

Waiting for long entry above 383.10.

stoploss hit!!!

Wrong trade.....after staying in overbought area for 5 bars or more, the oscillator going in the lower band, cancels bullish indication....In fact after that it went near OB area again and that was a sell signal instead of a buy there....

Smart_trade

Sideways market cannot be identified when the sideways move starts....but when the market gets bracketed in high/low range and in 1-2 attempts neither the high nor the low of the range gets broken and that tells us that we are in sideways market.

The moment you identify the sideways market, trade small ans try to sell / short near the top of the range and buy /cover at the the bottom of the range.... these ranges are very well visible on the charts....

But sideways markets always become trending markets when the sideways phase is over and markets breakout/breakdown....so ride the trend on breakouts.

Smart_trade