The Best Trading System

[singsanjay09]

Varun ji what was your initial sl?

 

[vijkris]

Thanks Sanjoy ji. Will do. But right now i think i am hijacking this thread.

Varunji, Law of Attraction is seen in this thread.

1st Tunaji, started with the Best system, and automatically another best system in the form of OBV got attracted here. :rofl:

now both systems has made this thread "best of the best" . :thumb: :clapping:

 

[varunkochhar]

You have just the basic rule to be long above 200EMA and short below it which is the international standards be it in OBV or price. So much the better if both are in sync.

 

[vijkris]

This is a 5min. chart of OBV of crude. I have plotted BB with my settings on that. The green horizontal lines are the points where one can take longs or add to ones position. The red line is where one could have taken profits.

It is vertical lines na ?

 

[Happy_Singh]

Happy ji that is a very good question. Those i add to time my adds. It is as if i have created channels in OBV and those help me in adding to my positions at the opportune time. More about it later once everybody has digested this.

Thanks

Please tell us more about this logic to scale into the winning positions


Happy

 

[varunkochhar]

Pls donot follow any indicator blindly. Try to go deeper to understand what it is all about. OBV is a very simple indicator. What it does is that it adds value of volume of the last bar to its value in case of a green candle and substracts value of the volume in case of a red bar. So effectively it tells you about the buyers and sellers in the market. When buyers are more it goes up and vice versa. Now as Sanjoy was saying, you get terrific positional trades when there is an anomally. Pull out any daily chart of any instrument and you will find that the OBV bottoms out earlier than price. So there are times when the price is falling and OBV is rising. That is the best time to buy once price also gives confirmation. Take the example of TATASTEEL. I still remember when it was at around 280 odd the OBV bottomed out and there was a considerable addition in OBV daily whereas price was going down(Informed or institutional buying was taking place) I distinctly remember the price went down to Rs.200 and then started moving up. All this while the OBV was also moving up. Then the price reversed and made a double bottom but the OBV did not fall by much. That was the best time to buy it for a positional trade as OBV was giving confidence. Tata steel has not looked back since then.

 

[varunkochhar]

Ya sorry vertical lines.

 

[varunkochhar]

Happy ji i will talk about it later as i feel it is only causing confusion and going against the premise of keeping the system simple.

 

[varunkochhar]

Sanjay ji the initial stop was the last significant pivot low below entry levels.

 

[varunkochhar]

So maybe a mere 8 or 10 points. I do not beleive in very big SL's. I do not want the market to tell me rudely that i was wrong after giving away 15-20 points. If stop hits so be it. There would be a next opportunity.