How to trade with an oscillator

[anjanbm]

Dear ST,
Your comments on NF daily stochastics staying in OB for 11 days and for dissipation of this bullishness how many more bars it may take. And can we look forward to buy when it comes to neutral and giving a buy signal.
And also your comments on yesterday's in 5 min NF nearly 18 bars have stayed in OB. Should we wait for osc to come to neutral and give a buy signal, at this point can we enter long. Please reply at your free time.
regards,
anjanbm

 

[Smart_trade]

Dear ST,
Your comments on NF daily stochastics staying in OB for 11 days and for dissipation of this bullishness how many more bars it may take. And can we look forward to buy when it comes to neutral and giving a buy signal.
And also your comments on yesterday's in 5 min NF nearly 18 bars have stayed in OB. Should we wait for osc to come to neutral and give a buy signal, at this point can we enter long. Please reply at your free time.
regards,
anjanbm

When the market reverses and the trend starts, it always goes in overbought and stays there for more than 5 days. In initial period even 10-12 or more days...there is no fixed measure . But when the trend is in last leg , it will tireout in 10-12 bars......but current trend is just the beginning of the uptrend.

If someone had bought on this 5 days in overbought critaria on aggressive pivot of 18/1 or 13/1 high....it would have been a great trade.

Smart_trade

 

[HARESHRM]

thanks sirji ,
I learn lot of thing from this topic ...
thanks again ...

 

[anjanbm]

Dear ST,
Coming days if NF daily stoc gives a buy signal without going to OS is it an opportunity to buy .
regards,
anjanbm

 

[avad]

Dear ST,
Coming days if NF daily stoc gives a buy signal without going to OS is it an opportunity to buy .
regards,
anjanbm

Though question is asked to S_T da hope you both dont mind if i add something as stochs is staple in my trades....

There are 2 things to keep in mind during such occasions...

1--->Go to higher tiimeframe and look at stoch and then take the decision.Helps a lot.

2---->if during the past 2-3 days th stoch has not gone in os region but just bounce from about 40-50 levels then it indicates that bulls are currently strong.

 

[anjanbm]

Dear ST,
When NF stchs on daily stays more than 5 bars, 10 or 12 bars and stochs coming out of OB area, and not going to OS and giving buy signal, can we go long.

One confusion here is as weekly stochs has not given any sell signal and on daily without waiting for buy signals on sthcs shall we go long or should we wait for buy on stochs.

please reply at your free time.
regards,
anjanbm

 

[rangarajan]

This thread coming out of Over Read area

Posted NF daily chart.Is the Negative Divergence,a matter of concern or should be interpreted in some other way.

 

[vinst]

This thread coming out of Over Read area

Posted NF daily chart.Is the Negative Divergence,a matter of concern or should be interpreted in some other way.

The sto is remaining OB. No neg div according to me.

 

[timepass]

This thread coming out of Over Read area

Posted NF daily chart.Is the Negative Divergence,a matter of concern or should be interpreted in some other way.

I guess we should not initiate any trades based on the divergence till the stochs have dipped into the neutral zone. There is no weakness in the stochs at present.

 

[Smart_trade]

I guess we should not initiate any trades based on the divergence till the stochs have dipped into the neutral zone. There is no weakness in the stochs at present.

Yes vinst and timepass,divergence when both tops in oscillator are in overbought zone should not be considered.

Smart_trade