How to trade with an oscillator

Smart Trade Sir,

It is sad to see that u not mentioning the name Thomas DeMark, while everything discussed here is the research result by him.

It reminds me what he says in one of his books, on why he decided to write the book.

pls take in the right spirit.

Hello Joy,

I never claimed that it is my own original research....these applications are based on original research done by Thomas DeMark....and I have no issues acknowledging the same.

Thomas DeMark wrote the book because his methods were wrongly being presented to the public ...do you find anything wrong in the methods presented ? If so let me know...I would correct myself....

Did not mention Thomas DeMark name as his langauge is difficult to understand so presented the qualifiers in my own language for people to understand..... The purpose is that people should understand the technique correctly and not claim that I did this research and found out these methods... understanding how to use an indicator is more important than who invented that indicator...

But I am glad that you brought this up....that gave me an opportunity to mention DeMark and hope that you being a DeMark follower ( we had interacted a lot in Sequential thread ) will contribute something more than who invented these techniques....

Best Wishes...

Smart_trade

Great work by you ST. I'm more interested in swing trading instead of intraday trading. Do you recommend 8,3,4 setting for swing trading also or we should use some other setting?

Regards
DJ

Aaam khaana hai kee ped gin na hai.. (want to eat mango or want to count the trees).

Whatever one chooses. he/she is correct.. so take your pick..
btw, I am interested in Mango.

Happy Trading.

Thanks a lot ST da !! Very lucid explanation !! Got my answer.

Best regards
Manoj

For those who are interested in learning more about oscillators,their construction,use etc...can go through " New Market Timing Techniques" by Thomas DeMark.It is a Wiley publication and one of the best books on Technical Analysis....

He has developed many unconventional oscillators and my favourite is TD REI...DeMark's language is very difficult to understand and that is why I chose to work with stochastics and did not introduce REI in this thread....I remember that I used to break long sentenses of DeMark into 3-4 small sentenses when I was studying DeMark techniques. But a serious trader who wants to work on trading ideas will find many in DeMark's books ( 3 books in all)

Happy trading....

Smart_trade

I suggest you work with hourly timeframes and try various settings but I find that the 8,3,4 setting work pretty well in hourly timeframe for swing trading...
But keep in mind that oscillators are not holy grails of trading...they can and do fail....like anything else in trading.

Smart_trade

ST Da,

I am trying to exactly do that .

Hourly charts, 5/13 EMA and the Stoch.
Entries and Exits same as that of Pride's method, start with minimum 2 lots [or to say 2X the lot size].
Exit 1 lot [2X/2 lot size] on a Stoch crossover in the Overbought/Overshold zone and hold the other lot with a tight-trailing-SL.
Re-enter [1 lot] when the stoch crossovers and the EMA shows a continuous trend.
Most of the times we would end up holding 1Xlot and on reversals/re-entires hold 2X lot.

I am testing this method for the current month's miniNF series. Please do let me know if you have any suggestions.

Regards,
-Sri

Looking forward to your work Sri.
All the best.

hi,

there are many trees and many fruits. and hundreds of varieties of mangoes
decide u eat one variety only or many.

Some one, pointing to mention the original creator, is a dumb one If u think so, then it is so, because everything is within ur mind, not in the outside.