How to trade with an oscillator

[tony_marcus]

Oiginally Posted by rangarajan
This thread coming out of Over Read area.

I do hope it goes back in the over read zone as I am hugely long on this thread. A flurry of questions today and ST's return from a short vacation constitute a positive divergence. So I may well get my wish.

 

[rangarajan]

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

Smart_trade

Thank you Smart.One more point noted.
But,if one had shorted,60pts profit (theoretically atleast).(Neg div in one hr TF also)

 

[gambler]

Hi ST,

I traded in reliance today, after positive diversion in below chart, i got my stop loss hit.

Please let me know where i did mistake! thanks in advance!

 

[murthyavr]

Hi ST,

I traded in reliance today, after positive diversion in below chart, i got my stop loss hit.

Please let me know where i did mistake! thanks in advance!

ST has earlier clarified on this..

The divergence needs to be considered only if the stoch has not gone to OB
zone in between the two lows.

So, there was no scope for a divergence-based trade in the instant case.

 

[timepass]

Hi ST,

I traded in reliance today, after positive diversion in below chart, i got my stop loss hit.

Please let me know where i did mistake! thanks in advance!

Gambler, according to the lessons in this thread, if the stochs reach the other side, the divergence may not be valid. In your chart, the stochs did reach OB zone from point 1 of the divergence, and then came down to OS zone to make point 2. Good of you to keep a stoploss, because then the stochs reverted to OS zone from neutral.

 

[rangarajan]

Hi ST,

I traded in reliance today, after positive diversion in below chart, i got my stop loss hit.

Please let me know where i did mistake! thanks in advance!

A gambler should be alert esp in Day trade,5mt TF.

Apart from above tech,still u got 6rs from entry level & a scalping,money management would have still given u profit and no loss.

Divergence,rarely disappoints.

Men become wiser by experience & better luck next time.

And dont forget,SG trades divergence in Higher time frame & better to look for confirmation.

 

[SavantGarde]

SG

 

[anjanbm]

Dear ST,
Your comments on NF daily stocs 17bars staying in OB and %k and %d both if comes out of OB and again giving a buy signal without going to OS, still will there be any buy opportunity.
Please reply at your free time.
regards,
anjanbm

 

[gambler]

shorted tata steel at 459.10 s.loss is 462.. after negative diversion... hope my trade is correct...

 

[benoit]

Thanks a lot ST da.. I have just finished reading this thread.. needless to say, it has helped me a great deal.. Your knowledge and understanding of the mkt is unmatched. however, what strikes me more is your humility and dedication to answer all the questions even the most elementary ones... take a bow..

I have made a word-doc for this thread (Mostly the posts and answers by ST da.. doc has more content from the earlier posts and lesser from later posts).

If any newcomer or others would find it useful i can post it here with ST da's permission..

Also, if anyone has a link to the Saint's 'Teach a man to fish..' PDf.. pls share.. Thanks in advance ..