How to trade with an oscillator

[Smart_trade]

thnak you very much for correcting me..now as i understand downclose bar may be same bar of flip point (it qualifies as downclose if close is less thn earlier/previous bar) am i right in the interpretation?
Next query: What is flip mean , just going down below 80 from above (provided not in ob for 5 bars or more)
regards
bliss

Yes on all the points...

ST

 

[Sunil]

Raghav,
you seem to have entered the parameters for stochastics incorrectly.

Refer these posts:

http://www.traderji.com/day-trading...y-strategy-profit-everyday-64.html#post329034

http://www.traderji.com/day-trading...-strategy-profit-everyday-107.html#post332011

Apply these settings on Nifty Future, as that is what we trade.

 

[Raghavacc]

Regards
Raghav

 

[Raghavacc]

Raghav,
you seem to have entered the parameters for stochastics incorrectly.

Refer these posts:

http://www.traderji.com/day-trading...y-strategy-profit-everyday-64.html#post329034

http://www.traderji.com/day-trading...-strategy-profit-everyday-107.html#post332011

Apply these settings on Nifty Future, as that is what we trade.

Hello Sunil,

Thanks for correcting me. at the corner of my mind it was saying something is wrong in setting.

ST,

One of those days where Market ( our patience !!) is getting consolidated:rofl:There was nothing on the plate to take.

pls see whether my analysis is correct.Also Pls ignore BB as it has nothing to do with this method.

Regards
Raghav

 

[Sunil]

Raghav,
your ST in Stochs does not correspond with S2 in price
S2 in stochs is marked at 12:30, while in price, you have joined the line from 13:30

Refer this website for rules about divergence trading

 

[Raghavacc]

Raghav,
your ST in Stochs does not correspond with S2 in price
S2 in stochs is marked at 12:30, while in price, you have joined the line from 13:30

Refer this website for rules about divergence trading

Hi Sunil,

12.30 Trade :S2 is not a divergence trading. Its a trade based on rule "Stoch not staying in OB zone for more than 5 bars" .

14.30 Trade: S3: A trade based on confirmation of divergence.Hope that sounds good.

Regards
Raghav

 

[san77s]

Sir,
Here i post today's nifty 5min chart with entry,exit mark. Please check and give your comment, correct in case i was made any mistake.

In Chart marked A as more then 5 candle stay above OB indicate as bullishness.
From there STS fall till 40 level and made a curve marked as "B". High above previous Candle is entry point. ie 5278 at 11.45 candle

Point "C" as STS curve from 80 level show the weakness.. Am i right sir?

Thanks & Regards
S.Saravanan

 

[Smart_trade]

Sir,
Here i post today's nifty 5min chart with entry,exit mark. Please check and give your comment, correct in case i was made any mistake.

In Chart marked A as more then 5 candle stay above OB indicate as bullishness.
From there STS fall till 40 level and made a curve marked as "B". High above previous Candle is entry point. ie 5278 at 11.45 candle

Point "C" as STS curve from 80 level show the weakness.. Am i right sir?

Thanks & Regards
S.Saravanan

S.Saravanan,

You are right...at point marked "A" oscillator staying in OB zone for more than 5 bars means further strong move is coming...so you can buy in any dip...like at "B " marked in the chart and a strong upmove did come....,at point "C" there is a sell signal which satisfied all qualifiers and it worked well.....

Best wishes, happy trading,

Smart_trade

 

[AW10]

ST Da. Just want to know your obsrevation of "Stochastics staying in OB/OS zone for > 5 bars" pattern from Elliott waves perspective.

Have you seen more of it in Wave 1 (i.e. soon after reversal), indicating that it is not typical Wave A of correction but development of new trend.
Or in Wave 3, where it indicates that it is not Wave C and end of correction, but we are in new trend and wave 5 is still remaining.

In EW trading, it is always challange to differentiate A wave of correction, with Wave 1 of new trend, or to differentiate end of C wave from end of wave 3.

Cause if I look at above chart then before point A, stochastics remained in Oversold area for > 5 bars. Didn't that mean further downtrend but it failed (not sure if trading OSold zone is part of this strategy or not). To me that seemed like wave 5 of fall (which included panic selling) hence did not followthru but mkt reversed after that and new trend developed giving us >5 bars in OB area at point A.

Hope I am able to put my question correctly to get small piece of your experience here.

Happy Trading

 

[Smart_trade]

ST Da. Just want to know your obsrevation of "Stochastics staying in OB/OS zone for > 5 bars" pattern from Elliott waves perspective.

Have you seen more of it in Wave 1 (i.e. soon after reversal), indicating that it is not typical Wave A of correction but development of new trend.
Or in Wave 3, where it indicates that it is not Wave C and end of correction, but we are in new trend and wave 5 is still remaining.

In EW trading, it is always challange to differentiate A wave of correction, with Wave 1 of new trend, or to differentiate end of C wave from end of wave 3.

Cause if I look at above chart then before point A, stochastics remained in Oversold area for > 5 bars. Didn't that mean further downtrend but it failed (not sure if trading OSold zone is part of this strategy or not). To me that seemed like wave 5 of fall (which included panic selling) hence did not followthru but mkt reversed after that and new trend developed giving us >5 bars in OB area at point A.

Hope I am able to put my question correctly to get small piece of your experience here.

Happy Trading

Hello AW10,

The OB/OS for more than 5 bars typically comes in impulse waves and more so in extended impulse waves...it rarely comes in A wave of ABC zig-zag or flat corrections. In case of impulse wave 1 and 3 extentions are more common so this pattern is more common in wave 1 and 3 but sometimes in 5th wave extention this pattern happens,the market stays in OB/OS zone for 6-8 bars ( I have seen as many as 15 bars also in OB/OS area) and the market reverses from there. This pattern will not come in diagonals in 5th wave or in nonextended 5th wave.....

Hope the above helps....

Best wishes...

Smart_trade