Re: How to trade with an oscillator Part 2
Hi moderator,
golden words , couldn't agree more.
technical does work good for scalping, i don't know about swing trading.
regards
mtftrader
Anything in technical analysis is based on what the market does most of the time.Thus there will always be exception to any rules.A trader has to understand and accept this fact....this is the reason that all good analysts are not great traders.
In any analysis,price is supreme.So after 5bars or more in overbought region,if the price starts going down and breaks a pivot low, the trader should get out of long position.In 70-80 % time new high will be made but 20-30 % time it will not be made.So as a trader be prepared for that.
After the OB zone,the price retraces in neutral zone and again starts going up and gives 1 or 2 negative divergences.So buy in a neutral zone above a latest bar high...with a stop at low of the bar.
When from OB zone indicator dips in OS zone, the overbought indication gets nullified.
To anticipate weakness we see overlapping bars,small bars not making much progress on the up side...not breaking the high,that should make a trader alert .
Always remember pice is supreme.
Smart_trade
In any analysis,price is supreme.So after 5bars or more in overbought region,if the price starts going down and breaks a pivot low, the trader should get out of long position.In 70-80 % time new high will be made but 20-30 % time it will not be made.So as a trader be prepared for that.
After the OB zone,the price retraces in neutral zone and again starts going up and gives 1 or 2 negative divergences.So buy in a neutral zone above a latest bar high...with a stop at low of the bar.
When from OB zone indicator dips in OS zone, the overbought indication gets nullified.
To anticipate weakness we see overlapping bars,small bars not making much progress on the up side...not breaking the high,that should make a trader alert .
Always remember pice is supreme.
Smart_trade
golden words , couldn't agree more.
technical does work good for scalping, i don't know about swing trading.
regards
mtftrader