How to trade with an oscillator

[rananjay00007]

excellent threat........pls keep it up:clap::clapping::thumb:

 

[GREENCANDLE]

let us try ourself to conntinue this beautifull thread .

 

[GREENCANDLE]

pls ck nifty spot 1m TF is it excelent short opertunity

 

[Smart_trade]

Will post a couple of recent charts and trades taken on them tomorrow....

Smart_trade

 

[Smart_trade]

Posting Nifty Futures 15 min chart....observe that on 2nd and 3rd March the indicator stayed in overbought area for more than 5 bars,indicating a strong upmove...buying there with a stop of immediate pivot lows have already given a good upmove....

Defining the market environment as bullish/bearish is the best use which the oscillator can be put to use and then we have enrty,exits,stops etc based on the price action....if we listen to the messege oscillator was giving us and that is" market likely to go much higher...buy all dips and DO NOT SHORT...." the indicator has done its job very well....

Smart_trade

 

[sprintravi75]

thanks 4 the explanations given on oscillators

regards

Oscillators such as Stochastics,RSI,ROC are important tools in the hands of a trader trading on technical analysis. But oscillators are generally used in a wrong way and the common reaction of traders is to sell if the oscillator goes into overbought zone and buy once it moves in oversold zone.

The above is too simplistic way of trading with an oscillator....here we will discuss some nonconventional ways.....

Best wishes for the " Oscillating Roller Coaster Journey"

Smart_trade

 

[Kaiser]

BNF e.g. from 05.03.2010

TF: 30 min
Oscillator: RSI

 

[Mangafreakz]

BNF e.g. from 05.03.2010

TF: 30 min
Oscillator: RSI

Are you using RSI the same way like Stochastics ?

 

[Kaiser]

Are you using RSI the same way like Stochastics ?

Yes....Same concept as explained by ST. Only thing, since I am more acquainted with RSI, so using RSI.

 

[Kaiser]

Self explanatory.