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[Metastockusers] Re: Divergence of oscillators



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Juan,

In theory you are on the right track about volatility.

The question of changing timeframes is another matter. Oscillators 
can be made adaptive but I'm not sure that the result is worth the 
effort. 

Before you play the game you should have a game plan that answers the 
question of how you will handle this. Keep in mind that some of the 
best trading opportunities occur when volatility contracts. You can 
also loose a great deal if you are not prepared. By all means use 
stops! 



Preston

 
--- In Metastockusers@xxxxxxxxxxxxxxx, "emarco" <emarco@xxxx> wrote:
> Hi,
> 
> 1) I would like to be advised how to handle the divergence of 
stochastics.
> I would like not to enter a trade when this happens: price does not 
move or
> goes down  and stochastic still goes up.....I know that depends of 
the
> period of the stochastic but perhaps there is a way to avoid this 
type of
> trades.
> My idea also  is to place a trailing stop when I am long or short 
and
> stochastic diverges.
> 2) "How to handdle stochastic due to a change in volatility?"
> In different volatility situations sometimes is better to use a 
faster
> stochatic than a slower or the other way round....How can I adjust 
the
> oscilators with change in volatility?
> Perhaps is too challenging cuz volatility changes suddenly or you 
adjust to
> a different volatility and would have been better with the previous
> one...just thoughts
> I know is the 1MM question but any comment or advise would be 
appreciated.
> 
> Thanks
> 
> 
> Juan


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