iCharts Discussions

[guru.july]

Hi,

I've been experimenting with stochastic on Nifty-1M. Here is the result of my trades for 12th and 13th May.

Regards,
Guru

[maooliservice]

Dear sir,

what is the time frame for this

Thanks & Regards

Mohan

[guru.july]

It's on 5min chart..

[amitkbaid1008]

Strategy is not very much clear. It will be better if you give details like What to look for first and how to make entry/exit.

[guru.july]

Okay once again explaining all the points.. Please refer to the chart..have made small correction.

Points:

1. OB>5 bars which means it still has some steam to go up.. at 3:10 on 11th May. Dont take any action.

12/05/2011

2. Next day on 12th May stoch gives a clear indication to short at 10:25. You can short here or wait for confirmation as stoch goes down and prices go up.

3. Point 3 gives clear indication to short as there is divergence and stoch prepares to go down and also the price. I shorted here at 5569.

4. Here stoch goes to Oversold zone (OS) and stays there for more than 5 bars. You can cover shorts by buying to make some profit or can wait.

5. Stoch again comes back to OS and stays there for > 5 bars.

6. Lower lows in price and \highs on stoch.. Ideal opportunity to book profits here.

7. I covered my shorts here at 5478.. Booked 91 points profit.

Stoch goes to neutral zone from OS zone.. which means if it comes back to hit OS zone next day it's an ideal opportunity to buy.

13/05/2011

8. As i told stoch comes and kisses the OS zone..and bough here at 5477.

9. Stoch goes to OB zone and stays there for more than 5 bars which means there is still steam.

10. You can book profit here at 5562 or take risk and wait for some more upper move which is what i did.. I took a risk here..anyway i'm on the profit side.

11. Price instead of higher highs is making a small correction which is also the case with the stoch.

12. Stoch goes back to OB zone and stays there for more than 5 bars.

13. Stoch goes back and kisses the OB zone and price is making higher highs. I sold here at 5620..143 points on the same day. ..

14. Stoch this time kisses the OB zone and it's an opportunity to short.. I dint take any trades at this time as i was happy with the profit...

Total profit 11,000/per lot in just two days..

Hope this explanation helps in understanding the strategy..

Regards,
Guru

[BKMANJUNATH]

sir
iam doing option trading i am having puts of 5500 nifty which stochastic (slow or fast ) is better plz advice

[guru.july]

If you are using Jcharts(Premium) just use Stochastic (8, 3, 4) setting for intraday.

Regards,
Guru

[NS0420]

tf?

[guru.july]

5 mins

[ssrivatsa]

Hi Guru

I too use Stoch-Price divergence. I would like to have a chat with you on the exit reading... let me know.

[vishal7072]

sir, what is ob>5 bars and os>5 bars please explain

[guru.july]

Hi Srivatsa,

Fix up a time so that we can discuss on this topic. We cant exchange email id's here.. We'll chat on ichart itself.

Regards,
Guru

[guru.july]

Hi Vishal,

OB>5 means the stoch is in OB zone for more than 5 candlesticks of price. Please observe points 8 to 9 on the chart..From point 8 stoch is going to 80 after crossing 80 stoch is in OB zone (crossing 80 and coming back to 80 at point 9) and during this time the candlestick in price is more than 5 bars. You can count the bars.

Same logic applies to OS>5.

Please get back to me if you still dint understand same.

Regards,
Guru

[prabit]

Hi, Guru,
Excellent trading.Please keep posting your trades good or bad , we shall be able to learn from you.
Thanks

[vishal7072]

got it sir,
Thanks
I will definitely test the strategy