Rangarajan,
You are missing the following :
1) The area you marked is a second time the oscillator went into OB region and stayed for 5 bars. First time it went before that was at 12:25 bar and stayed there for 7-8 bars, then came to neutral area and again went to OB zone and stayed for 5 bars....if you had bought anywhere in the first zone, you would have made money....but also appreciate that market cannot remain in OB zone indefinately.......after 2 or 3 zones and staying in OB it gets tired out.....
2) Buying in the dips means buying once the fall is over, which is confirmed by taking out a bar's high or a pivot high......none of the two happened...and the market went into OS area nullyfying the effect of excessive OB area.
3) See the earlier chart examples carefully....whenever the market goes in OB area and stays there for > 5 bars, you will get a shallow pullback to sideways movement if the market has to go to a new high and not a deep fall like we had today in ICICI......the fall was so deep that the oscillator went into OS zone......this case is NOT a right case for buy the dips....
Trading is an art. It is never an exact science....we have some templates to guide us in our journey but we should not stretch it too much......
Smart_trade
You are missing the following :
1) The area you marked is a second time the oscillator went into OB region and stayed for 5 bars. First time it went before that was at 12:25 bar and stayed there for 7-8 bars, then came to neutral area and again went to OB zone and stayed for 5 bars....if you had bought anywhere in the first zone, you would have made money....but also appreciate that market cannot remain in OB zone indefinately.......after 2 or 3 zones and staying in OB it gets tired out.....
2) Buying in the dips means buying once the fall is over, which is confirmed by taking out a bar's high or a pivot high......none of the two happened...and the market went into OS area nullyfying the effect of excessive OB area.
3) See the earlier chart examples carefully....whenever the market goes in OB area and stays there for > 5 bars, you will get a shallow pullback to sideways movement if the market has to go to a new high and not a deep fall like we had today in ICICI......the fall was so deep that the oscillator went into OS zone......this case is NOT a right case for buy the dips....
Trading is an art. It is never an exact science....we have some templates to guide us in our journey but we should not stretch it too much......
Smart_trade
Message well taken for future trade.
Incidentally,JSWSteel two days back,traded at O/B zone,above five bars,three times,making New High everytimePerhaps rare case.
As u rightly say,trading is not a science or maths & only propablity.
But this method is really good if one has patience & conviction.