Trading with OBV - for Beginners only !!

[extremist]

Vijay !!! Have you made any 2PDC afl for OBV..if yes !! please share or else prepare one my dear kind man !!! ...

i will do back test on that !!!

PDC2 - Day before Yesterday's Close of OBV

_SECTION_BEGIN("OBV PDC2");

ND = Day()!=Ref(Day(),-1);		
Ob = OBV();							
pdc = ValueWhen(nd,Ref(Ob,-1),2);

if( ParamToggle("OBV PDC2 ", "No|Yes", 1))	
Plot(pdc,"",colorRed,styleNoLabel|styleNoRescale|styleDashed);


_SECTION_END();

 

[mohan.sic]

PDC2 - Day before Yesterday's Close of OBV

_SECTION_BEGIN("OBV PDC2");

ND = Day()!=Ref(Day(),-1);		
Ob = OBV();							
pdc = ValueWhen(nd,Ref(Ob,-1),2);

if( ParamToggle("OBV PDC2 ", "No|Yes", 1))	
Plot(pdc,"",colorRed,styleNoLabel|styleNoRescale|styleDashed);


_SECTION_END();

Hi, Normal/Bold line pls

 

[extremist]

I would like to add one thing here coz i been watching tht all want to guess what's panned in a day ahead by using OBV.

As long as obv is in yesterdays range of OBV ; market will maintain range.
If yesterday range hi broken then consider it as volume addition in the direction of break
If yesterday range Lo broken then consider it as volume addition in the direction of break

Range

Breakout for Trend

 

[extremist]

And now you will need Code to plot yesterday's Range of OBV...

PD R - Previous Day Range

_SECTION_BEGIN("OBV PD Range");

nd = Day()!=Ref(Day(),-1);	
Ob = OBV();							
prh = ValueWhen(nd,Ref(HighestSince(nd,ob),-1));
prl =  ValueWhen(nd,Ref(LowestSince(nd,ob),-1));

if( ParamToggle("PD Range ", "No|Yes", 1))	
PlotOHLC(prl,prh,prl,prl,"",colorblack,stylenoreScale|styleNoLabel|styleCloud,0,0,0,-7);

_SECTION_END();

 

[varunkochhar]

Extremist ji that is an excellent observation. My sincere and humble advise to you is if you have understood the relevance of OBV, do not try to convince these people, just use it to good effect to earn for yourself. If you give these people one reason to use OBV, they will give you 10 reasons not to do so because of their rigidity and bias. If after reading ST ji's continuos appreciation of OBV they cannot come about to using it, i think you also would be wasting your efforts here. As far as XRAY ji's reservation to using OBV in Day TF is considered, let me add my findings in telling him why it would also work in Day TF. You see OBV is not only about direction (which of course can be made out very clearly from price action. It is also more importantly about the intensity of the breakout. Meaning yes in Daily TF OBV would replicate Price in direction, but the edge in this case is the quantum of Volumes (OBV) which may lead to giving early breakout than waiting for price to BO. This study is important to gauge the volumes on down days compared to volumes on up days. I hope you get it. And as regards the 2 examples shown in this thread to point out the failure of OBV, well i have always maintained that the best signals are got when both OBV and Price are in sync. In this case going by the fall in OBV, was weakness reflected in price. No. So why would somebody take a short just on seeing OBV action. (these kind of sudden OBV moves happen when there are block deals between 2 consenting parties at a pre determined price.)

 

[extremist]

Extremist ji that is an excellent observation. My sincere and humble advise to you is if you have understood the relevance of OBV, do not try to convince these people, just use it to good effect to earn for yourself. If you give these people one reason to use OBV, they will give you 10 reasons not to do so because of their rigidity and bias. If after reading ST ji's continuos appreciation of OBV they cannot come about to using it, i think you also would be wasting your efforts here. As far as XRAY ji's reservation to using OBV in Day TF is considered, let me add my findings in telling him why it would also work in Day TF. You see OBV is not only about direction (which of course can be made out very clearly from price action. It is also more importantly about the intensity of the breakout. Meaning yes in Daily TF OBV would replicate Price in direction, but the edge in this case is the quantum of Volumes (OBV) which may lead to giving early breakout than waiting for price to BO. This study is important to gauge the volumes on down days compared to volumes on up days. I hope you get it. And as regards the 2 examples shown in this thread to point out the failure of OBV, well i have always maintained that the best signals are got when both OBV and Price are in sync. In this case going by the fall in OBV, was weakness reflected in price. No. So why would somebody take a short just on seeing OBV action. (these kind of sudden OBV moves happen when there are block deals between 2 consenting parties at a pre determined price.)

Accepted all your technical views...

Bro you deed splendid Job by sharing OBV method.
you did not left any stone unturned.

So you did your Work. Coz you thought it would help others too.
And you also know tht it did helped to lot of us.

Now just leave it.....
one thing i learnt in my life
"You can not change somebodies Destiny"
you can not force feed to anyone.
ignore....those views which upset you.
one day or other every trader will understand the importance of Volumes.

Thank you from the bottom of my heart for that great thread.

 

[PUCHU_2500]

I am not understanding OBV properly but trying to use it on my own way (though varun sir tried to teach us about it in his various ways....thanks to him for his selfless efforts).......I draw some res/sup and PDC line on OBV and I trade when it breaks down or out or rejection at res/sup ......

 

[varunkochhar]

XRay ji these charts are for you. Please observe the short term BO (in Pink Box) and Longer BO (in white). What do you observe. The white BO in daily in OBV was way ahead of price (in Sep 2015 against Jan-2106)

 

[varunkochhar]

I am not understanding OBV properly but trying to use it on my own way (though varun sir tried to teach us about it in his various ways....thanks to him for his selfless efforts).......I draw some res/sup and PDC line on OBV and I trade when it breaks down or out or rejection at res/sup ......

You seem to be doing just fine. It all boils down to trading BO and BD's in OBV for a good sustained move. That is all there is to it. Now it all depends on your skills and screen time as to which line you use as reference line for using this BO/BD concept. You can use PDC/11 AM/1.30 AM/36EMA and 200EMA as milestones. So whichever is above the OBV line is an immediate resistance and what is below as immediate support. This is only for reference initially. Once you get the hang of it, you would not be needing any reference point and you would be able to trade directly from OBV line. (It is something like attaching two extra wheels on a cycle when you start learning and then taking these extra wheels off when you master cycling.)

 

[XRAY27]

XRay ji these charts are for you. Please observe the short term BO (in Pink Box) and Longer BO (in white). What do you observe. The white BO in daily in OBV was way ahead of price (in Sep 2015 against Jan-2106)

Varun ji !!!

Try to pick up charts from Daily use Bhav copy of nse and then post !!! below is for you !!! every scrip should be adjusted for dividend/split/bonus ,reliance is a dividend fellow,what i have said is there is not much edge in daily charts ,but for short time frame yes it got its edge

True interpretation needs valid data !!!


For your remembrance i'm posting your own charts of GAIL

http://www.traderji.com/technical-analysis/103908-my-system-my-trades-805.html#post1224770

Your question

http://www.traderji.com/technical-analysis/103908-my-system-my-trades-805.html#post1224773

My answer

http://www.traderji.com/technical-analysis/103908-my-system-my-trades-806.html#post1224796