How to trade with an oscillator
- Thread starter Smart_trade
- Start date
There are two schools of thoughts.....One school says I am short at say 5400.....my analysis shows that the market is going to go to 4400 or even lower, then I will ride the corrective upmove and hold the short positions. The other school to which I belong to will say ok I shorted at 5400, but if my chart is showing divergence and smaller timeframes like hourly is showing the short term uptrend, I will cover , possibly go long, and again open short positions at 4750 or 4850 wherever I get the short signal and ride the current short term uptrend . This way suppose if the market has already reversed and the next major uptrend starting, I will not miss out....and if the downtrend resumes, will go short again at higher levels...
I am never comfortable holding any position against the current trend....irrespective of where I have sold......but that is a call everyone has to take.
Smart_trade
I am never comfortable holding any position against the current trend....irrespective of where I have sold......but that is a call everyone has to take.
Smart_trade
Smartrade, would you not agree with me that the stochastics rising much quicker than price (By comparison to how fast it dropped with price.), that the reversal is very close, especially with he reading in the 90's? I was looking at chart R namely the swing low just under 4760 or the swing high, which appears around 4780, to be containment.
Timepass, I agree with you for the most part, but let me direct the answer to the posts in 1104 and 1123
I talked about this before, but let's say you are looking at a lower TF, and there are strong implications of a move going the opposite way on higher TF's. Forget what the lower has to say about it.
Here we go. Personal experience again. When the EUR/CHF as dropping to Never-never land, the 4-hour and daily was OS at circa 1.1450. 1 1/2 weeks later it was at 1.0089. Regardless of what the stochs say, never get in the way of a freight train.
This goes back to Theartofweb's 2 recent posts. Look at the higher TF's. I guarantee you they had overwhelming evidence of the continued move north.
I talked about this before, but let's say you are looking at a lower TF, and there are strong implications of a move going the opposite way on higher TF's. Forget what the lower has to say about it.
Here we go. Personal experience again. When the EUR/CHF as dropping to Never-never land, the 4-hour and daily was OS at circa 1.1450. 1 1/2 weeks later it was at 1.0089. Regardless of what the stochs say, never get in the way of a freight train.
This goes back to Theartofweb's 2 recent posts. Look at the higher TF's. I guarantee you they had overwhelming evidence of the continued move north.
Theartofweb, can you post your hourly and 4-hour and on this market?
QUOTE=theartofweb;624912]Please, look at the image below (15min chart).
27 december: You can see oscillator staying in OB region for longer than 5 bars then sliding to OS region (!). Is that good BUY opportunity, because it came back from OS reagion after 1/2 bars?
[/QUOTE]
QUOTE=theartofweb;624912]Please, look at the image below (15min chart).
27 december: You can see oscillator staying in OB region for longer than 5 bars then sliding to OS region (!). Is that good BUY opportunity, because it came back from OS reagion after 1/2 bars?
Smartrade, along the same point you mentioned is why you cannot take on indication on one TF. It takes a confluence in order to accurately assess the market.
It was kind of comical one time. I was in a conversation in a chat room I had in 2007. We were talking about single indications. I posted 5 charts of when a MACD formed positive divergence and headed lower. I almost had the guys believing to go short on a positive divergence. It was just to point out no indicator is wrong or right, but a confluence of indications is always needed.
It was kind of comical one time. I was in a conversation in a chat room I had in 2007. We were talking about single indications. I posted 5 charts of when a MACD formed positive divergence and headed lower. I almost had the guys believing to go short on a positive divergence. It was just to point out no indicator is wrong or right, but a confluence of indications is always needed.
Dear Smart,
I am posting today's chart of NF,both 5min & One hr,stoch 8,3,4.
Though,the stoch stayed in o/b from 10.35-11.05,7bars,it did not exceed the high of 4808 made at 10.55.
Remembering the Longer TF,one hr chart did not suggest any Down trend,perhaps a retracement was thought because of o/b in 5minTF.
At 11.10,it formed a Lower pivot,tempting a buy.But the stock fell all the way,forming a H & S pattern also.
Pl discuss,why one should not have gone long on dips esp 11.10 pivot
It also formed +ve Divergence bet 11.45 to 13.05,which also did not pay had one gone long above 4772,13.0hr candle.Ofcourse,at this time the one hr trend was down but for a 20pts tgt,what was wrong in going long in a lower TF anticipating a pull back?
I am posting today's chart of NF,both 5min & One hr,stoch 8,3,4.
Though,the stoch stayed in o/b from 10.35-11.05,7bars,it did not exceed the high of 4808 made at 10.55.
Remembering the Longer TF,one hr chart did not suggest any Down trend,perhaps a retracement was thought because of o/b in 5minTF.
At 11.10,it formed a Lower pivot,tempting a buy.But the stock fell all the way,forming a H & S pattern also.
Pl discuss,why one should not have gone long on dips esp 11.10 pivot
It also formed +ve Divergence bet 11.45 to 13.05,which also did not pay had one gone long above 4772,13.0hr candle.Ofcourse,at this time the one hr trend was down but for a 20pts tgt,what was wrong in going long in a lower TF anticipating a pull back?
how did you traded today?
there was 2 divergence but price didnt went up
Praveen
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