My System - My trades.

[varunkochhar]

I guess i am done with OBV here. Now it is upto you guys to use it or abuse it and post your successful or failed trades here. Enough gyan on OBV.

 

[varunkochhar]

Hi guys. Most of you have not understood the relevance of OBV. Let me tell you what it is and what it is expected to achieve. In plain and simple terms OBV can be construed as the market bias indicator. My understanding is there cannot be a real increase in price in absence of volumes. This is the basis of my studies. To understand volume action better and in a more tangible way we can mark 3 points (in any time frame that you trade). These are the 1st line to be drawn as reference point in OBV charts is the end of the 1st bar on opening in whichever time frame you trade. (meaning 9:16 in 1min. bar, 9:18 in 3 min. bar and 9:20 in 5 min bars). The second horizontal line at 11:00 and the 3rd at 1:00 PM. These lines may be treated as zero lines. i.e to take long only signals when OBV values are above these reference lines and short only signals below it (with proper sl's). You may mark another line at 2:30 to achieve the same objective. Now these 3 lines would become your supports and resistance lines of OBV for the day. Pull up any chart and backtest and you would see amazing results. Price movement without volume support would only fall like a house of cards sooner rather than later. In fact such a scenario gives rise to divergence trade which has an excellent win/loss ratio and RR.

These 3 time zones are not random. They have been chosen to reflect the action based on 1) opening 2) 11:00 is the time institutional orders start coming in 3) Effects of European markets trickle in. 4) 2:30 runup to the close

 

[varunkochhar]

This method and my experiences are not something i have picked up from Youtube or some book. I am a very avid reader but i read fiction not trading. One has to go through the learning curve alone only with the market as a teacher. I think MB seems to be on the right path. He understands what he is looking for in OBV and is charting his own course. That is the way to evolve as a trader. To learn on one's feet.

 

[varunkochhar]

You have to study countless number of charts to understand the nuances. Trading cannot be learnt by bookish knowledge.

 

[biggles]

hi varun,
can you discuss the suitability of OBV over PVT.


Why is there diff in PVTs indication of accumulation distribution than over OBV and A/D indicator

thanks

This method and my experiences are not something i have picked up from Youtube or some book. I am a very avid reader but i read fiction not trading. One has to go through the learning curve alone only with the market as a teacher. I think MB seems to be on the right path. He understands what he is looking for in OBV and is charting his own course. That is the way to evolve as a trader. To learn on one's feet.

 

[XRAY27]

I guess i am done with OBV here. Now it is upto you guys to use it or abuse it and post your successful or failed trades here. Enough gyan on OBV.

Varun ji !!! i'm following your OBV along with MP/VP ..There no question of doubt that it adds value to once trading arsenal !!!

I'm just posted my way of trading in other thread with OBV ,thanks for visiting that !!!

A person has to spend his own time for adjusting to new way of trading ,it is much simpler then MP and VP ,but when combined to MP/VP..its results are excellent in terms of R:R

i'm not posting in your thread any chart because it will case confusion to newbie and starters

 

[Smart_trade]

I see that most people come with the problems and throw the problem to other people and expect readymade ideal solutions.Trading success is not interested in knowing the problems but it is interested to see how YOU solve those problems in best possible way.

Smart_trade

 

[Smart_trade]

Some weekend off topic chat :

Many years ago I joined a multinational American company as a young executive armed with degree in engineering and MBA. I was expecting perfect things....so when people did not do what they were supposed to do or if anything goes wrong with our plans,I used to get very upset.....

It was our general manager who changed my attitude towards things going wrong.He told me once that "Young man,we expect perfection but world is full of imperfections.....things will go wrong and that is why the company employs you and me paying higher salaries....if things were perfect, then we are redundant and our Sipuram ( Sipuram was our office peon ) can manage the entire company....

So also in trading there will be problems...if everything was perfect, then Sipuram would be the greatest trader in the world.

Smart_trade

 

[varunkochhar]

hi varun,
can you discuss the suitability of OBV over PVT.


Why is there diff in PVTs indication of accumulation distribution than over OBV and A/D indicator

thanks

Biggles ji since i do not use any derivatives of price or volume(other than OBV) i would not be able to answer your question.

 

[monkeybusiness]

Some weekend off topic chat :

Many years ago I joined a multinational American company as a young executive armed with degree in engineering and MBA. I was expecting perfect things....so when people did not do what they were supposed to do or if anything goes wrong with our plans,I used to get very upset.....

It was our general manager who changed my attitude towards things going wrong.He told me once that "Young man,we expect perfection but world is full of imperfections.....things will go wrong and that is why the company employs you and me paying higher salaries....if things were perfect, then we are redundant and our Sipuram ( Sipuram was our office peon ) can manage the entire company....

So also in trading there will be problems...if everything was perfect, then Sipuram would be the greatest trader in the world.

Smart_trade

Da, I am adding this line to my signature :lol::lol::lol: