My System - My trades.

[varunkochhar]

Gaur ji there is no explanation from my side as this is a 3rd class system as repeatedly proved by the senior analyst. I request you not to trade this method as it will only give you losses as per the backtesting done by a few people.

 

[jd1234]

Varun Ji If those analysts are so intelligent then why they dont post their chart and trades here.

 

[varunkochhar]

please help me to understand how OBV initiates demand and supply.

meanwhile any OBV follower can answer until Varun Ji reply

Price goes up when there is more demand for the underlying. and vice versa for prices going down. So what impacts price. This demand and supply right. So where does this demand and supply come from. From volumes traded. Where does OBV come from. Volumes. So what does it all signify. Volumes (OBV) leads price. (if you get this simple fact to register, you will not go wrong in the long run).

 

[timepass]

Looking at monthly charts from 2004 to 2009, we see that OBV is more of less rising, regardless of severe price shocks.

Price goes up when there is more demand for the underlying. and vice versa for prices going down. So what impacts price. This demand and supply right. So where does this demand and supply come from. From volumes traded. Where does OBV come from. Volumes. So what does it all signify. Volumes (OBV) leads price. (if you get this simple fact to register, you will not go wrong in the long run).

 

[Vipul_84]

Varun sir, thanks for great explanations. Simple common sense concepts when you explain them. Frankly speaking, I am bit nervous about deriving positional or swing bias based on 1 min OBV chart and PDC line. Many times its so happen that other higher time frames close below PDC but 1 min closes above PDC and still we give more weightage to 1 min close and conclude that trend is up. This is my biggest doubt. Thanks for all your support and I have started using OBV iny trades.

 

[Vipul_84]

TP sir, OBV is unique indicator. It works best at the lowest TF. Anything above daily would be misleading. My 2 cents till BOSS answers .

Looking at monthly charts from 2004 to 2009, we see that OBV is more of less rising, regardless of severe price shocks.

 

[vsatrader1]

Looking at monthly charts from 2004 to 2009, we see that OBV is more of less rising, regardless of severe price shocks.

icharts NS volume data is wrong as per icharts admin. dont rely on it. better chk with some stock

 

[varunkochhar]

No I have a very simple explanation. The volume is added to the OBV value in the case of a green candle and substracted in the case of a red candle. The higher the time frame, more distorted the data. Say for example in a month nifty open at 5500 has a massive sellof till 5300 but creeps up with very thin volumes to 5501 and closes that month over there thus making a green candle. Then all the volumes of the month would be added to the monthly value of OBV without looking at the fact that it went down with high volumes throughout the month. That is why i always claim that the best and most clear picture (not distorted)of OBV is derived from tick data (if that is not available then 1min.data)

 

[Vipul_84]

Yes Varunji , makes solid case for OBV as leading indicator

 

[john302928]

Hi Below is the Banknifty6 APR PE21300 contract in 1 min time frame with 36 EMA and 200EMA in price and 200 EMA in OBV.

Now both price and OBV has come above 200EMA. Now we need to select the swing high/pivot point above 36EMA. I am bit nervous to select the right point on swing high. there are lot of swing highs above 36 EMA, which one is right. can any one guide me please. Thanks in advance