My System - My trades.

[Vipul_84]

I think there are other reasons why traders are finding it difficult to accept OBV. One of the reason is the fact that 96% of traders FAIL in this profession in first year of trading and other fact that masses are often wrong at trading. Both are true facts. But dont make the mistake of considering Volume as OBV. Masses are wrong but they often trade 1/2 lot types. Real volume comes from select 20% (Pareto's 80-20 principle). And over and above that, OBV is just not volume but its SMART VOLUME. If one goes thru definition of OBV, even sell volume is considered buy if price closes above open. And using it with 1 minute TF, then manipulations are minimal. This is real secret of OBV
My 2 cents ...

 

[Vipul_84]

Nice chart Manoj. If possible share AFL code. Green & red lines in OBV PDC look great! Will like to add in mine. Best would be if we can have Ribbon based on OBV PDC. Missing Happy Ji these days ....

Varun ji this is similar case to banknifty future. Here also obv closed below PDC line. So when should we cut our short position in this case ?

Its yesterdays price high or obv's high which when breaks we have to cut the short trade ?

 

[varunkochhar]

Yes sir looks logical to me. OBV levels closing below PDC line signifies reduction in open interest. Price would normally go higher if there is an addition in open interest. This is my logical and simple reasoning. It is something like a red candle formed in price with a lower close than opening.

 

[varunkochhar]

For intraday PDC alongwith 11:00 AM 1:00 PM and 2:30 PM lines are also very helpfull for people who cannot interpret OBV action by just watching. These give you 4 reference points (akin to supports and resistances of price charts)

 

[varunkochhar]

Manoj ji just noticed, nice and clean charts.

 

[manojborle]

Nice chart Manoj. If possible share AFL code. Green & red lines in OBV PDC look great! Will like to add in mine. Best would be if we can have Ribbon based on OBV PDC. Missing Happy Ji these days ....

_SECTION_BEGIN("On Balance Volume");
Ob = OBV();	
nd = Day()!=Ref(Day(),-1);	
lb = Day()!=Ref(Day(),1);
ob = OBV();
zero = ValueWhen(lb,ob);
color = IIf(Ob>zero, colorBrightGreen, colorBrown);
Plot(zero,"",colorWhite,styleNoLabel|styleStaircase|styleDashed);
Plot(Ob,"",color,styleNoTitle|styleThick);
_SECTION_END();

Vipul ji this is the afl i use for obv.

 

[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

Dear Varunkochhar and vijkris, requesting your attention on this chart and help me understand where would have you entered with the above chart information

 

[varunkochhar]

john ji for an instrument worth Rs.4 how would it have mattered, which pivot to use. You could have used any point once it moved above 200EMA.

 

[wisp]

john ji for an instrument worth Rs.4 how would it have mattered, which pivot to use. You could have used any point once it moved above 200EMA.

Lets assume the instrument is worth more, where would you have entered varunji?

 

[manojborle]

Varun ji this is similar case to banknifty future. Here also obv closed below PDC line. So when should we cut our short position in this case ?

Its yesterdays price high or obv's high which when breaks we have to cut the short trade ?

Varun ji please answer this query...