How to trade with an oscillator

[Smart_trade]

ST Sir,
Even though this greeting comes to you a little late, the wish it brings for happiness is good on any day date.Wish that your life will continue to be filled with the happiness you deserve. Have a fabulous year.

Regards...

Thanks Satyen,yoza,anjanbm,mangup and rr_inp for your good wishes which are very valuable to me.....

Smart_trade

 

[hills_5000]

Loved VWAP at work today...its very tempting to get out between 3.10..3.20 pm...when the price starts to pull back...but its after tht that the real actions happens... almost always...

That right ST Sir..?

 

[timepass]

ST, am I missing/misreading something, or is the nifty (spot) weekly still really showing a strong downtrend with a hook on the stochs ??

 

[Smart_trade]

ST, am I missing/misreading something, or is the nifty (spot) weekly still really showing a strong downtrend with a hook on the stochs ??

So far we are considering this upmove as a bear market rally and the downtrend may resume again and this upmove could be a hook. But if on weekly chart we pivot here and take out that pivot after a correction, then there may be a change in trend.

In any case the current short term trend is up and we trade as per the trend and we are trading from long side. When the trend changes to down , we will start trading from short side.

Smart_trade

 

[Smart_trade]

Posting nifty Futures 5 min chart. Today we had positive divergence,Oscillator in overbought region for 7 bars, VWAP difference exceeding 35-40 points.......all rolled in one in the last buy signal.

Chart is self explanatory.

Smart_trade

 

[murthyavr]

Posting nifty Futures 5 min chart. Today we had positive divergence,Oscillator in overbought region for 7 bars, VWAP difference exceeding 35-40 points.......all rolled in one in the last buy signal.

Chart is self explanatory.

Smart_trade

Dear ST,

Thanks for the chart.

In the above chart, there are three possible entries for a buy transaction.

1. 13:30 candle - Here %K crossed %D after divergence.
(Basing the trade purely on divergence)

2. 13:35 candle - Here this candle crossed the previous PH of 13:05
(This crossing is important, because it indicates trend reversal in this TF)

3. 13:50 candle - This candle breaks the TDST Resistance.
(Ultimate proof!)

However, we would be moving away from ideal stop loss as we wait from
candle-1 to candle-3.

--

So, where do you take the trade generally?

And, do you enter the trade on a closing basis or as the price breaks-out?

 

[rangarajan]

Dear Smart,
I have a query reg 'Trading the Divergence'.
Once the Divergence has been spotted,is there any thump rule reg any particular bar High/close/Low /colour(bull or bear)/no of bars/pivot/crossing of d&K/TF confirmation,etc,for entering Long/Short/Exit.

What is TDST Resistence/Support(murthy's post above) & its significance

 

[Smart_trade]

Murthy/Ragarajan,

Will reply to both the questions in the evening....market about to start....

ST

 

[balasoft80]

Hi ST,
Could you please tell me where can I get AFL for TDST and VWAP? Thanks a lot

Bala

 

[rangarajan]

Dear Smart,
I have posted the chart of copper as at 17.35 today.(MCX)
I have marked the negative divergence as i understood.
The short was near 405.6 & it came down only upto 405.25 & reversed.
Was the trade correct & if so why it went wrong.What should have been the s/l.
Perhaps the only point of concern was that the intermediate trough was near 30 in stochastic when the tops were compared.
In one hr TF,P/L was formed & uptrend