Experiments with OBV

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mohan.sic

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Dear mohan,
Please go through NSE site for how this index calculation will be done....it will help to understand the spot....though its not needed for our trades :D
I too half knowledged.but NSE itself giving volumes in spot data ...so its there
dear vjay,

1)Index calculation has got nothing to do with our topic.
Index numbers change based on underlying price changes ( proportionate to each stock weight in index ). Its price driven. Volume is no where in picture.

2) yes, Nse is giving shares traded for Nifty spot.
Does it mean Nifty spot is trading ? .... No.
NSE is giving consolidated volumes of shares traded in Nifty stocks.

Nse is not wrong in giving that data. Purpose of that data is to give a snapshot on volumes and turnover of all the index constituents at a glance.

Now we must use our intellect to understand where to use that data and where not to use.

OBV as a indicator is used to understand strength of the trend based on volumes traded. Here volumes traded means...actual volume. Since spot is not traded, obv should not be used on spot data.
 

mohan.sic

Well-Known Member
Mohan ji the OBV is of Nifty futures not of nifty spot. You do not trade spot. You trade Nifty futures. This OBV value is of the number of contracts traded in Nifty future not the sum of all constituents of Nifty.
bro, why are you repeating what i said. i think you read that single post and jumped in.
 

VJAY

Well-Known Member
dear vjay,

1)Index calculation has got nothing to do with our topic.
Index numbers change based on underlying price changes ( proportionate to each stock weight in index ). Its price driven. Volume is no where in picture.

2) yes, Nse is giving shares traded for Nifty spot.
Does it mean Nifty spot is trading ? .... No.
NSE is giving consolidated volumes of shares traded in Nifty stocks.

Nse is not wrong in giving that data. Purpose of that data is to give a snapshot on volumes and turnover of all the index constituents at a glance.

Now we must use our intellect to understand where to use that data and where not to use.


OBV as a indicator is used to understand strength of the trend based on volumes traded. Here volumes traded means...actual volume. Since spot is not traded, obv should not be used on spot data.
Yes this bolded part is main thing in trading .....I used this data since long to
look where nifty is going ...so what one see in a chart that may be not seen to others ....its fact in trading and trading methods
 

VJAY

Well-Known Member
Do you mind explaining the logic behind the entry? Is it only due to the ribbon on price pane turning blue or is it both ribbon blue + OBV Green??

How do u get this ribbon on the price pane?

Thanks a lot in advance
Entry based on both OBV and price crossed 200 ema arround same time ..I seen in some charts when this happens its strong... yes entry can take on change of ribbon colour or hogh in red ribbon area...
as far ribbon ..just insert ribbon afl on price pane....
 

mohan.sic

Well-Known Member
Yes this bolded part is main thing in trading .....I used this data since long to
look where nifty is going ...so what one see in a chart that may be not seen to others ....its fact in trading and trading methods
i really don't see any point in that expect your rigid opinion.

I am giving a factual picture of the indicator.
 

XRAY27

Well-Known Member
I'm just updating trades basing on 4 rules of entry which i updated at the start of the thread !! Stopping this from tomorrow..As rules are easy for adoption..Do your own backtesting

Todays trades



 
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wisp

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