How to trade with an oscillator
- Thread starter Smart_trade
- Start date
There are many ways to identify the major trend is UP. One of the most obvious is the weekly DOWN TL was broken. Whenever a TL is broken, it says that trend is over. When it is broken, there is a correction back to it, such as what we have seen over the recent few days, and then a reversal back to the new trend.
After this correction is finished, then expect the recent peak to be broken, and for the market to reach for new highs. After this correction is finished, you would have a swing low on the bigger picture, and thus, by connecting the dots you have a new uptrend, along with a velocity rate of the total rise, and not only the rate for now, but also for the future.
Between the current area and the actual touching of the TL is where a reversal will ensue, and then you can take what you have learned here in Smartrade's thread to ascertain the entry.
I'd like to add that once the TL is touched. An excellent entry would be on the next candle, with a few points under the low of the touching of the TL as the stop. That is just some additional artillery to add with what you are learning in this thread on stochastics.
After this correction is finished, then expect the recent peak to be broken, and for the market to reach for new highs. After this correction is finished, you would have a swing low on the bigger picture, and thus, by connecting the dots you have a new uptrend, along with a velocity rate of the total rise, and not only the rate for now, but also for the future.
Between the current area and the actual touching of the TL is where a reversal will ensue, and then you can take what you have learned here in Smartrade's thread to ascertain the entry.
I'd like to add that once the TL is touched. An excellent entry would be on the next candle, with a few points under the low of the touching of the TL as the stop. That is just some additional artillery to add with what you are learning in this thread on stochastics.
Anjan, I posted my chart and deleted yours, because I wanted to show you the nature of a TL break and how predictable future price action is going to be in the future.
First, depended on price action on Tuesday, the stochastics is going to be OS and curled under, showing the warning of a reversal. Price action is also getting close to a cluster support event, which aids in discerning the reversal point, along with using the stochastics to abet in the indication.
Your chart showed a weak break of the TL and consolidative active under it. The main component of a TL break is that price action is forceful, which is accompanied by a stronger than usual candle. That is your signal the trend is over within that TF.
My black TL's are always drawn off the 4-hour and the red off the weekly.
This is very important information, because it shows over coming days the market is going to go sideways before the big trend continues north.
We already had the reversal back to the point of the break on the weekly TL. That would suggest we are ready to move back north.
The problem is we had the break of the 4-hour TL which shows we are moving south. We are now waiting for the move north to correct the break of the TL, and then from the 4-hour perspective, it will reverse and head lower. After that is finished, we will be real close to the red TL (weekly) for the next strong move north.
This is conjecture, but if I had to guess, the weekly stochastics is only going to be around 40 <> when the market is ready to head back north.
One of the things ST has pointed out repeatedly is the importance of being aware of market conditions with regard to the stochastics. This is a time you do not want to wait for the stochastics on the weekly to be OS, because if you do, the market is going to leave without you.
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First, depended on price action on Tuesday, the stochastics is going to be OS and curled under, showing the warning of a reversal. Price action is also getting close to a cluster support event, which aids in discerning the reversal point, along with using the stochastics to abet in the indication.
Your chart showed a weak break of the TL and consolidative active under it. The main component of a TL break is that price action is forceful, which is accompanied by a stronger than usual candle. That is your signal the trend is over within that TF.
My black TL's are always drawn off the 4-hour and the red off the weekly.
This is very important information, because it shows over coming days the market is going to go sideways before the big trend continues north.
We already had the reversal back to the point of the break on the weekly TL. That would suggest we are ready to move back north.
The problem is we had the break of the 4-hour TL which shows we are moving south. We are now waiting for the move north to correct the break of the TL, and then from the 4-hour perspective, it will reverse and head lower. After that is finished, we will be real close to the red TL (weekly) for the next strong move north.
This is conjecture, but if I had to guess, the weekly stochastics is only going to be around 40 <> when the market is ready to head back north.
One of the things ST has pointed out repeatedly is the importance of being aware of market conditions with regard to the stochastics. This is a time you do not want to wait for the stochastics on the weekly to be OS, because if you do, the market is going to leave without you.
image hosting gif
As i am familiar & comfortable in this thread,i am putting this enquiry here.
I am using Demo version of MT4 platform for NF only.
My usage is for seeing the chart & other indicators.
The values plotted are only Near month.
My query is
a) Is there provision in MT4 s/w to see & plot other months also.(next,far)
b) since the continuous chart is always for near month in Demo version,is it alright to go by indicators.
To be more specific,jan contract contd with Feb contd with March.Whereas even in Jan,feb & Mar will have diff values but the continuation is for near month.
I am using Demo version of MT4 platform for NF only.
My usage is for seeing the chart & other indicators.
The values plotted are only Near month.
My query is
a) Is there provision in MT4 s/w to see & plot other months also.(next,far)
b) since the continuous chart is always for near month in Demo version,is it alright to go by indicators.
To be more specific,jan contract contd with Feb contd with March.Whereas even in Jan,feb & Mar will have diff values but the continuation is for near month.
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