How to trade with an oscillator

[timepass]

Vjay, Rangarajan :

The first divergence was ok, but a minor one. The second divergence (around 2.30pm) was shouting "buy" because the stochs had stayed in OB for >5 bars, came down, and reverted upwards without entering the OS zone..

PS : This is all 20:20 hindsight, of course. Now I see it, but at the time I too was too unsure to take any trade.

 

[timepass]

It is very difficult, ST, to read the stochs, and trade the price. It's not easy at all. A spike in price may not cause much reaction in the stochs, the indicator being lagging. With yesterday's chart, the stop losses were triggered by long tailed candles.

 

[timepass]

...because the stochs had stayed in OB for >5 bars, came down, and reverted upwards without entering the OS zone..

A similar situation with stochs may be forming on the 30 min charts.. keep an eye, the green RSI hasn't yet crossed over the red RSI.

Edit : Also, there is a tweezer top / engulfing bear kind of formation in the last two candles.

 

[EagleOne]

Vjay, Rangarajan :

...The second divergence (around 2.30pm) was shouting "buy" because the stochs had stayed in OB for >5 bars, came down, and reverted upwards without entering the OS zone..

http://i.imgur.com/mhExa.jpg

PS : This is all 20:20 hindsight, of course. Now I see it, but at the time I too was too unsure to take any trade.

Bingo!
That's exactly what I thought, TP. And I took the trade...all the way to its logical conclusion (my intended target was 4771 spot).

 

[rangarajan]

I am posting the Screen shot chart of Tata Motors,showing Hidden +ve divergence which i came across while surfing Net.Of course the Stoch setting r different as seen in the chart.

 

[Relativity]

how to convert amibroker chart scale to log scale ??

 

[rangarajan]

An other one from the same site

 

[avad]

S_T-

i have a problem with profit booking. I have been trading nifty with good entry points with stochastics but i dont know where to book profits?

Eg. Today bought nifty at 4,815 and exited at 4,828. But it went up to 4,842 as i write this. Is there any way to reduce this early profit booking?

Thanks.

 

[Smart_trade]

S_T-

i have a problem with profit booking. I have been trading nifty with good entry points with stochastics but i dont know where to book profits?

Eg. Today bought nifty at 4,815 and exited at 4,828. But it went up to 4,842 as i write this. Is there any way to reduce this early profit booking?

Thanks.

Why did you sell at 4828 ? Here you are trading like a scalper and expecting to hold till you get larger profits....both conflicting things....there has to be some reason for taking profits...such as Oscillator in extreme zone, End of the Move bar, previous supports/resistances,or a short term pivot low cracked....etc

In 5 min there is no pivot low cracked after your entry...market not giving any threat to your position....

Is there any way to reduce this early profit booking?.......ask yourself why am I taking profits....curb the urge to take small profits...but that does not mean that end up holding the trade for too long and convert profits into loss....

Smart_trade

 

[Smart_trade]

NF now at 4863.............4872 is a good place to take part profit....

ST