Santosh, when entering a trade in using the stochastics or any other oscillator, check the higher TF's to see what they are doing. I'm sure Smartrade when he gets back to his thread will agree with me on the basic long and short of this. If the higher TF's are suggesting a strong trend by virtue of the crossover in the OB/OS area or the open-mouth attribute of a strong trend, then it will nullify the lower TF.
There was talk about divergence, stochs breaking to 30, then heading back up, and etc. All of that does not mean a lot if the higher TF's are dominant. As I mentioned, everything you see on the lower TF's are virtually nullified.
You can personally observe what I am talking about, by taking note of what you see on the 5-min (for example), then compare it to the hourly or 4-hour.
AMAF, I'd like to hear someone's input on what they see on the hourly or 4-hour from the chart posted in #1061.
Let me use a metaphor. Let's say you spit in the ocean. You won't notice it, because the ocean is the dominant liquid. If the 5-min is OB, and the 4-hour is beginning to react to its OS condition, the 5-min will go unnoticed because the 4-hour is the dominant TF.
There was talk about divergence, stochs breaking to 30, then heading back up, and etc. All of that does not mean a lot if the higher TF's are dominant. As I mentioned, everything you see on the lower TF's are virtually nullified.
You can personally observe what I am talking about, by taking note of what you see on the 5-min (for example), then compare it to the hourly or 4-hour.
AMAF, I'd like to hear someone's input on what they see on the hourly or 4-hour from the chart posted in #1061.
Let me use a metaphor. Let's say you spit in the ocean. You won't notice it, because the ocean is the dominant liquid. If the 5-min is OB, and the 4-hour is beginning to react to its OS condition, the 5-min will go unnoticed because the 4-hour is the dominant TF.
ThanX for the reply Paul Sir,
Your valid points about considering larger TF while looking to enter a trading decision is well taken.
But my query was on general divergence analysis..
fatigue:..Typo there in my earlier post.. now corrected)..
are there any rules set while looking for divergence in common.
can you please through some light on this subject..
Regards
Santosh
Your valid points about considering larger TF while looking to enter a trading decision is well taken.
But my query was on general divergence analysis..
fatigue:..Typo there in my earlier post.. now corrected)..are there any rules set while looking for divergence in common.
can you please through some light on this subject..
Regards
Santosh
