stochastic intraday trading

#1
i have found this intraday trading method in a book and found it useful.
in the method stochastic oscillator is used.

The rules for buying is that the share MUST not have made a new low for the day but the oscillator has made a new low.
The stop will be below the low of the day.
Just the reverse for shorting.

see the chart attached.

 

vishalalluri

Well-Known Member
#2
hi prateek can u detail on it more
 
#3
hi vishal
thanks for feedback
i use to see this chart from the following link
http://ichart.finance.yahoo.com/z?s=^nsei&t=1d&q=c&l=on&z=l&p=,e20,&a=ss

since no detail of the stochastic level is given in the chart i am also not aware of the stochastic level used.
i have seen the strategy 3 months ago and tracking certain stocks based on this method
and found that the no. of success is fairly good.
but the problem is that it gives signals only in a few stocks in a day.
abt one out of 7-8 stocks
i doesnot have any advanced charting software so hard to catch the trade at time.
and the other issue is that it does not define any profit booking technique.
but considering the good amt. of success i think this method can be used for trading
, may be with some modifications.

to see chart of specific script replace reliance by the code of nse and use 5 instead of 1(t=1) to see chart of 5 days
http://ichart.finance.yahoo.com/z?s=reliance.ns&t=1d&q=c&l=on&z=l&p=,e20,&a=ss

suggestions are always welcomed

also note that the strategy works better in a volatile, liquid stock.
 

vishalalluri

Well-Known Member
#5
i have found this intraday trading method


the rules for buying is that the share must not have made a new low for the day but the oscillator has made a new low.


hi prattek

so the chart u have given is one for shorting
but do u think its practically easy to track stocks in intraday

u meant 7-8 stocks out of the nifty 50 show such signalsin intraday?
 
#7
i have found this intraday trading method in a book and found it useful.
in the method stochastic oscillator is used.

The rules for buying is that the share MUST not have made a new low for the day but the oscillator has made a new low.
The stop will be below the low of the day.
Just the reverse for shorting.
Hi Prateek,
About the indicator, do you mean that if the price makes a new low and indicator doesn't make a new low, then the market is reversing and turning bullish.
Please share your thoughts.
Thanks.
 
#10
Hi Prateek,
About the indicator, do you mean that if the price makes a new low and indicator doesn't make a new low, then the market is reversing and turning bullish.
Please share your thoughts.
Thanks.
hello valencia
you have misunderstood the signal.
i said that the share MUST NOT made a new low
whereas the stochastic has made a new low preferably below level of 20

if the share has made a new low , we should not buy