Buy signal comes when the oscillator comes out of 20 or OS zone ,satisfies all critaria. Oscillator staying for more than 5 bars in OB area shows that market is strong and likely to go up further...but if you buy there, be very nimble to get out on signs of trouble and not wait for your stops to be hit. Our stops should be hit rarely...we should in most cases get out of the position much earlier based on market action. At market top today, oscillator had gone in OB zone after giving negative divergence giving enough hints to get out from long position near the top .No reason for stoploss to get triggered.
Smart_trade
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