Hi Traders,

This idea comes from many years of live trading (real money not demo's etc) and sticking to figuring out when the typical (rebased/indexed) oscillators like the MACD and Stochastic.

I don't believe in just entering on a under 20 over 80 type idea but rather when the, for example, Stochastic is under 20 and something else happens - candle pattern, on Fib Retracement, at Support/Resistence etc

*** I use an idea here call market form - this another idea I used which is based one Dow Theory of Higher Highs and Lower Lows for deciding the trend direction and when the market is ranging. ***

When to use
1. The market is ranging with form - long and short trades work with high probability
Here the market is in a range with good form. The Oscillator (Stochastic) in this case works well. For shorts and longs...



2.  The market is ranging without form - Oscillator (stochastic) doesn't work well. A lot flatter and not that many profitable trades, more false signals...



3. The market is trending with form - here ony look to take trades in the dirction of the trade. The Oscillator is good for entry only and not exits


4. The market is trending without form - There is no signal in the trend direction and it will give sgnals against the tre but has poor performance.


I hope this is helpful and stirs up some thinking around the different movements of the market and Oscillators - I have shared 4 of them (2 types each with and without good form). I have foun at least 8...

Thanks!
Brad