How to trade with an oscillator

ST, For exit, when you say down close bar's low is taken out, does even a shadow meet this requirement?
Not clear on what do you mean by shadow ...please elaborate....

When the oscillator qualifiers are fulfilled and the down close bar's low is cracked in subsequent bars...it is a sell signal.

Smart_trade
 
Sorry ST for the lack of clarity. Thanks so much for getting back and some more questions. By shadow I meant the tail like thing in the candle that sticks out of the body. So if the next bar crosses the low for a second then we sell or do we wait for completion of that candle? If we wait for completion, then do we sell even if the low of that candle has taken out of the low of the bar that down closed or should it be the body that takes it out? Is it ok to trade on one min charts or is it better with the 5 min charts? Do we place the buy order on a particular price or just buy at market rate? Sorry if all my questions sound really dumb :(
 
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Hi ST, one more question (sorry :( )
On this thread http://www.traderji.com/day-trading/30182-how-trade-oscillator-35.html with the 26-3-2010 Nifty chart, we decided to buy because of the oscillator in OB for more than 5 candles, but by the time the pivot high was broken and where the blue buy line is Oscillator is in the neutral zone. Does this mean that once we see the oscillator at OB for more than 5 candles, we buy when pivot high is broken irrespective of where the oscillator is at that point? Am I understanding this correctly?
 
ST
for daytrading on 5min(stchtcs) can we consdier data of yesterday as continuation ?
or should we wait for new formation of more than 5 to 6 bars in OB (stchts) on today data ?
 
I am trader of NSE India. I planned to trade in the following style:

1. Wait till 9.30 am, afterwards Buy the stocks with open = low, Keep the SL below Low. After 10 am, if trading above the ATP, trail the SL below ATP and move the SL with ATP.

2. If Open = High, after 9.30 am, Buy the stocks above day's High, put SL in day's Low.After 10 am, if trading above the ATP, trail the SL below ATP and move the SL with ATP.

3. If, Open # LOW # HIGH, If trade above ATP, buy the stock and keep sl below day's low. After 10 am, if trading above the ATP, trail the SL below ATP and move the SL with ATP.

Is it correct and Can i make profit, Seniors pls advice
 

EagleOne

Well-Known Member
ST
for daytrading on 5min(stchtcs) can we consdier data of yesterday as continuation ?
or should we wait for new formation of more than 5 to 6 bars in OB (stchts) on today data ?
Krish
A very intelligent question, I must say. I asked myself the same quite a while ago. And then I observed that 5 min chart is nothing but a record of heat-of-the-moment trading decisions - good for entry and exit during day trade. It is the higher TFs, starting from 60 min, that has any continution validity. Cause 20 point gap up or gap down will throw the 5 -15 min charts' history out of the loop.

Hope it will help you. Of course, I also await ST thoughts on it! :)
 
Hi ST, one more question (sorry :( )
On this thread http://www.traderji.com/day-trading/30182-how-trade-oscillator-35.html with the 26-3-2010 Nifty chart, we decided to buy because of the oscillator in OB for more than 5 candles, but by the time the pivot high was broken and where the blue buy line is Oscillator is in the neutral zone. Does this mean that once we see the oscillator at OB for more than 5 candles, we buy when pivot high is broken irrespective of where the oscillator is at that point? Am I understanding this correctly?
You are mixing two different modes....the method with oscillator qualifier is one part which only says that when we have oscillator in overbought zone for more than 5 bars we should not sell. But a corollary to the above is if it is not a place to sell then it must be a place to buy.....this is a second part ( this is our way of using this method on the other part....but this second mode is aggressive and should be traded with proper stoplosses as you are buying into extended move which can reverse anytime. Experience proves that after 5 bars the move goes in the same direction for few more bars but this has to be traded with caution and good risk control.

Kindly read the thread , the method and qualifiers carefully so as to understand it correctly.

Smart_trade
Smart_trade
 
ST,

Pardon my simple question.

I am using Indiainfoline. Where can I get the oscillators from them ? Are they embedded in the charts ?

Thanks.
I do not know whether India Infoline provides charts along with their front end trading terminal. But if it does then Stochastic % D is a standard indicator in most charting packages....India Infoline charts should also have it. You have to plot this oscillator in the charting software below the price chart.

Smart_trade
 
You are mixing two different modes....the method with oscillator qualifier is one part which only says that when we have oscillator in overbought zone for more than 5 bars we should not sell. But a corollary to the above is if it is not a place to sell then it must be a place to buy.....this is a second part ( this is our way of using this method on the other part....but this second mode is aggressive and should be traded with proper stoplosses as you are buying into extended move which can reverse anytime. Experience proves that after 5 bars the move goes in the same direction for few more bars but this has to be traded with caution and good risk control.

Kindly read the thread , the method and qualifiers carefully so as to understand it correctly.

Smart_trade
Smart_trade
ST, thank you so much. Would the buys in this chart fall in this second part (the aggressive one) then and in this case we don't really worry where the Stoch is at the point of buy?

The rules for going long are as follows:
1. The oscillator should have gone to oversold zone.
2. Wait for a bar where the oscillator flips...ie comes out of oversold zone and comes in neutral zone....
3. In doing step 1o 2 the oscillator should not have stayed in oversold zone for 5 bars and more
4. Wait for an upclose ( meaning close more than earlier bar's close)
5. Ensure that by that time oscillator does not go very near overbought region
6. Buy when the high of the upclose bar is broken on upside

Please correct me if I am wrong. Thanks.
 

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