Trading with OBV - for Beginners only !!

[XRAY27]

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();

Extremist bhai !!! thank you very much !!!

 

[varunkochhar]

Dividends and splits may impact price but not really OBV(and that also once but from then on it is business as usual) . But yes Bonus normally does (as people start selling their free shares). But this all is reflected in OBV (which does not take price into consideration. So if there is sustained selling it gets reflected in OBV. The case with GAIL is that we are still above BO levels, so there is no sell as per OBV (just a red flag as the Volumes are not going up as per price rise). Where have i asked to sell. I have only asked to be carefull and to sell only on weakness.

 

[vivektrader]

Could difference in results be also due to inaccurate/different obv data by different data providers?

Vivek

 

[varunkochhar]

What is divergence and how is it helpfull wrt OBV. Well as in the Reliance charts posted above what it meant was that when price broke down, the volumes did not measure up to the extent of the fall (Meaning the market makers were not convinced of the fall and so the OBV made a higher low whereas the price made a lower low) This was the first indication that what is being seen in price charts was not the true picture. What one could and should do in such cases is for price to show strength again to enter/renter because of this divergence. (This was a clear case of price and OBV not being in sync and to take positions, once this anomally was corected). And as far as data is concerned it from accredited NSE Vendor.

 

[varunkochhar]

XRAY ji where is the difference in Data between what you have posted and i. They appear to be same.

 

[mohan.sic]

Could difference in results be also due to inaccurate/different obv data by different data providers?

Vivek

Data providers give price/volume data. OBV is plotted by your software based on that data.

yes such inaccuracies occur. But that should not worry if you are testing EOD data. But You may face discrepancies on lower times frame data.

But again every discrepancy is not inaccuracy. Because, Differences may also arise due to Time interval differences at which data is pushed/captured( milli seconds)

Also differences may sometimes arise due difference in price OHLC values between data providers/terminals.

 

[extremist]

Accurate Data

If it's Eod then ok. u can get it from NSE.

But for ID....
i say there is no such thing as accurate data for people like us.
i mean there is no benchmark to compare with. some time even two authorized data venders of NSE give different bars.

so just ignore all this....
just keep trust on wht u see and wht u got as data.
and trade accordingly.

in my view... there is no such thing as accurate data.

 

[XRAY27]

XRAY ji where is the difference in Data between what you have posted and i. They appear to be same.

Varun ji !!! where is negative volume in my chart !!! why ??

answer is with the definition of OBV

just observe closing in Daily time frame i have not found any classic edge, tested on as many as 145 charts till now !!!

 

[mohan.sic]

Varun ji !!! where is negative volume in my chart !!! why ??

answer is with the definition of OBV

just observe closing in Daily time frame i have not found any classic edge, tested on as many as 145 charts till now !!!

what is negative volume ? You mean OBv if above zero line is positive volume and below zero line is negative volume ?

 

[vijkris]

I was watching bahubali 2. Nice movie.
Btw I did not understand any of 7 variations of obv. I am sorry. Whatever I understood I told a small summary of that.
Pls don't base your view based on my pnl thread.

I privately showed one chart to monkey business and showed him how Indiscipline gave me losses.

This double pdc, I saw more than 400 charts. It works for me.
Please give me the freedom to use whatever I understood. I will explain next week maybe.
If you like it then take it or else leave. Kick me out, no issues.
Earlier I was looking for 80% accurate method. Now I am ready to settle with 50% accurate method.
I showed only 1 chart to mb bhai. It is already integrated with vwap. If possible mb plz post that image from ur Inbox.

Thanks extremist for the afl. I hope its the same which I have.