How to trade with an oscillator

[Smart_trade]

ST Sir.... I have always had trouble with this quote..... When do you consider to move your Stops to Breakeven..... I mean suppose we are trading Nifty on 5min TF and it moves 15points (for example) in our favour.... Do you move the Stops to Breakeven......

Regards

Yes.....I will re-enter in case the market just hits my stops brought to breakeven and starts going in my original direction again... in Nifty Futures I will let it move by 10-15 points and try to bring down the stops to breakeven.....but once it moves more than 20 points...then in no case I will take a loss on this trade.

I normally will enter the short trade on pivot break / failure...and if the market comes back in the range after going 15-20 points in my favour then the market is either reversing or sideways....in both cases I would get out of the position....

Best Wishes.....

Smart_trade

 

[Smart_trade]

achopra,

We have discussed divergences in this thread....please go through the earlier posts....

http://img246.imageshack.us/img246/2747/niftytdst3minwn9.jpg

In this thread we have discussed TDST....how to use it etc....study the charts....today 4801 was TDST support level...it is one of the best indicator for profit bookings, initiating fresh positions.

But not sure whether we should discuss it here as many are already having problems with daytrades....don't want to add to the confusions. But for people who want to learn it, I can guide...but too tired to go on posting educative posts with charts, explanation etc..

Smart_trade

 

[vssoma]

dear,
i took short position, cause when price increase volumes are down and stocha also in down mode...and MACD also supporting...ST pls. correct me on my trade if ia m wrong...

 

[timepass]

dear,
i took short position, cause when price increase volumes are down and stocha also in down mode...and MACD also supporting...SM pls. correct me on my trade if ia m wrong...

My guess based on this chart, the oscillator is not showing any serious divergence from price at present. My guess, price will cool down slightly (as a retracement from the zoom up) but not seriously, and may even resume uptrend.


PS : Chhote munh, badi baat.. gustakhi maaf

 

[vssoma]

dear,
i took short position, cause when price increase volumes are down and stocha also in down mode...and MACD also supporting...ST pls. correct me on my trade if ia m wrong...

it's falling but, first it's proved me wrong ...

so, dear ST,was my trade wrong, if so give reason, if not how can we find out like this errors....

 

[vssoma]

dear timepass,
your are right...it's resumed it's uptrend right now....came down slightly and playing there only....
thank you for your comment.

My guess based on this chart, the oscillator is not showing any serious divergence from price at present. My guess, price will cool down slightly (as a retracement from the zoom up) but not seriously, and may even resume uptrend.


PS : Chhote munh, badi baat.. gustakhi maaf

 

[4xpipcounter]

Vssoma, this 1-min chart looks like it would have been good at that time, but I would check some of the higher TF's to see what they were doing at the time of the entry. My guess is the hourly oscillators are pointing north, with the MA following close behind.

The object is not to just jump in when a setup matches your criteria, but to also scope out the other TF's to see what they are doing.
Also, if this was a highly voluminous time of the day, then the 1-min chart does not have a chance trying to pull against the larger trend.

it's falling but, first it's proved me wrong ...

so, dear ST,was my trade wrong, if so give reason, if not how can we find out like this errors....

 

[4xpipcounter]

Uploaded with ImageShack.us

Uploaded with ImageShack.us

This is an example of what I was talking about in the previous post. On the far left of the 1-min notice the stochastics being OB, stayed that way for quite awhile while price kept going up. The encircled area on the hourly shows the same time that movement took place. The hourly was barely warming up, and the 1-min was OB. This is a case when the hourly is going to punk all over the 1-min.
By the time the 1-min was OB, the hourly was just starting to open up. Also, notice on the 1-min how the price came down slightly, but the stochastics dropped like a rock. The 1-min is stuck in a fierce UP.

This was fresh in my mind because this was a long trade I had that I took out near the top on the hourly. Now I will look to reenter this market, but the hourly is now OB and the 4-hour also caught up. I'll wait for a significant pullback from the 4-hour, then reenter my long.

 

[VJAY]

Dear ST da,
Can you please give your views on todays trades...what went wrong?.....
Is it due to expiry?

 

[rangarajan]

I am posting NF chart of Today,5mint TF,Stoch-8,3,4.
Also posting the trade.
Twice the entry got Triggered the S/L.
Pl discuss what was the problem in entries,whether S/L correct

Initial entry at 4660(10.45bar,%K53),s/l at 4643 which was P/L.Triggered.Went up to 4667 only by which time %K was 83 & came down upto 4633.2.
It showed a short<4648 & came upto 4633.2
Again bought >4650 as per methodology and gave a profit of 30pts.

However,the stock was in O/B zone for more than 5 bars & hence a buy on dips & No short. Trend was also up only.
Bought at 4683 with s/l at 4364,P/L which was triggered.Went down upto 4359.
Subsequently,it blasted up & as per ATP method,it was a real treat to watch the rocket.

Now,what was wrong in entries & s/l.As per stock method,there was no buy after the 2nd trigger unless the person is die hard.
By the way,mine was only paper trade. Neverthless,it may be useful if discussed.
I am not good at computer & my markings may be crude.