How to trade with an oscillator

Re: How to trade with an oscillator Part 2

so sir any other method for fine tune entries you suggest
Just see the entry qualifiers mentioned in the thread , they are meant for fine tuning the entry and avoiding false entries and whipsaws.

Smart_trade
 
Re: How to trade with an oscillator Part 2

Hello DA..!:)

I have been in market since an year but being a novis trader haven't made enough from market. I have been reading your thread's and found very use full to develop my trading skill. Big Thanks:thanx: for your great initiative and volunteer work to help traders like us.

Come to the point On 15th JAN I was long on BNF at 12792 ( point 1 ) on possitive RSI divergence but just in fear of loss I book profit very early:D. I posted chart here.

Could u please elaborate:! more on this that how to avoid this and stay in good trade.

Thanks in Advance

 
Re: How to trade with an oscillator Part 2

Hello DA..!:)

I have been in market since an year but being a novis trader haven't made enough from market. I have been reading your thread's and found very use full to develop my trading skill. Big Thanks:thanx: for your great initiative and volunteer work to help traders like us.

Come to the point On 15th JAN I was long on BNF at 12792 ( point 1 ) on possitive RSI divergence but just in fear of loss I book profit very early:D. I posted chart here.

Could u please elaborate:! more on this that how to avoid this and stay in good trade.

Thanks in Advance

Hi Rishi,

Your entry was perfect...but exit was bad.

You entered on positive divergence and a breakout of the range.....very good entry but after that large entry bar the market went sideways. Markets always go sideways after a large move. So as long as the price does not go inside the range it broke, you have nothing to worry. In fact this sideways was a good place to add to long positions at point 2.

Then market again broke out of that range and went sideways again at place marked as R2....this again is a place to add....the market is showing no danger signal. Also at this place the oscillator is in overbought area for more than 5 bars indicating that a strong upmove is yet to come ...and the market did exactly that but all that was readable on the charts.

Most new traders make a mistake of getting out on 1st breakout....this breakout was on a WRB or a Wide Range Bar and breakout WRBs very rarely fail....they signal start of the new uptrend.If it was 3rd or 4th sideways range breakout by WRB , I can understand your booking profits as it could be an exhaustion WRB.....but not at the Breakout WRB....

These things will come to you when you observe hundreds of charts and how markets behave....it comes by observation and practice, you will get it...:)

Best Wishes,

Smart_trade
 

rangarajan

Well-Known Member
Re: How to trade with an oscillator Part 2

Hi Rishi,
Your entry was perfect...but exit was bad.
You entered on positive divergence and a breakout of the range.....very good entry but after that large entry bar the market went sideways. Markets always go sideways after a large move.
Smart_trade
Smart,
Pl clarify that after the B/O bar,the next was a Bear candle.
I recall that in one of yr posts u had mentioned to watch for a bear candle to confirm the continuation of the B/o
besides,there was also a pivot formed.
considering the above,was it Not prudent to exit?
As reg more than 5 bars in o/b zone,we have to look for an entry around stoch 60. So should we not exit after 5 bars & look for reentry?
 
Re: How to trade with an oscillator Part 2

Smart,
Pl clarify that after the B/O bar,the next was a Bear candle.
I recall that in one of yr posts u had mentioned to watch for a bear candle to confirm the continuation of the B/o
besides,there was also a pivot formed.
considering the above,was it Not prudent to exit?
As reg more than 5 bars in o/b zone,we have to look for an entry around stoch 60. So should we not exit after 5 bars & look for reentry?
Rangarajan,

1) After the breakout from the range by a WRB, next candle is a bearish candle in the form of a long tail doji. But this candle is not entering into the range which market brokeout, so no danger. If it had entered into the range then we must get out as the breakout is a failure.

2) We already had a long trade when the market showed that it remained in OB region for over 5 bars, it is not a fresh entry.....so the question was whether to book profits there or hold....as per 5 bars the answer was hold as strong upmove is likely to follow. In OB zone for more than 5 bars, the market will not give us many opportunities to enter before it takes off on a strong upmove.

But re-entry is also fine as markets were showing no signs of reversal and lot of move was yet to come.But the oscillator never dipped below the OB region giving us a better place to re-enter.....

Smart_trade
 
Last edited:

rangarajan

Well-Known Member
Re: How to trade with an oscillator Part 2

Rangarajan,

1) After the breakout from the range by a WRB, next candle is a bearish candle in the form of a long tail doji. But this candle is not entering into the range which market broke out, so no danger. If it had entered into the range then we must get out as the breakout is a failure.
Smart_trade
Smart,
I have a confusion.
The bear candle next to WRB entered into WRB & closed below the close of the WRB.
So,pl explain the bolded of yr post for interpreting.
 
Re: How to trade with an oscillator Part 2

:thanx::thanx:
Hi Rishi,

Thanks da....!!! will keep in mind...

Your entry was perfect...but exit was bad.

You entered on positive divergence and a breakout of the range.....very good entry but after that large entry bar the market went sideways. Markets always go sideways after a large move. So as long as the price does not go inside the range it broke, you have nothing to worry. In fact this sideways was a good place to add to long positions at point 2.

Then market again broke out of that range and went sideways again at place marked as R2....this again is a place to add....the market is showing no danger signal. Also at this place the oscillator is in overbought area for more than 5 bars indicating that a strong upmove is yet to come ...and the market did exactly that but all that was readable on the charts.

Most new traders make a mistake of getting out on 1st breakout....this breakout was on a WRB or a Wide Range Bar and breakout WRBs very rarely fail....they signal start of the new uptrend.If it was 3rd or 4th sideways range breakout by WRB , I can understand your booking profits as it could be an exhaustion WRB.....but not at the Breakout WRB....

These things will come to you when you observe hundreds of charts and how markets behave....it comes by observation and practice, you will get it...:)

Best Wishes,

Smart_trade
 
Re: How to trade with an oscillator Part 2

hi all i just started reading your thread and find completely new knowledge about how to use the stch in overbought and oversold area ..and i'm looking forward for more info on this topic so that i can improve my trading skills :) .. as i'm new to trading i'm confused with stoch input that u can provided , so i'm attaching my trade tiger snap ..can anyone please elaborate me wat values to be entered at what places.



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