My System - My trades.

[sunilshimar]

trade in cash.... quick 12 points

 

[kumudhan]

XRAY ji method.

 

[anktyag]

Hi all OBV followers,

Is this possible that obv remain above 36 and 200 ema and price makes new lows?
At least in this chart of ABAN offshore.
I have not seen this in other chart ( price making new lows and below ema 36 and 200 and obv remain above ema 36 and ema 200)

OBV is disturbed with sudden volume spike (though it looks uniform) so I added price volume trend but that too is rising.

Or is this data error from Zerodha?

 

[XRAY27]

Hi all OBV followers,

Is this possible that obv remain above 36 and 200 ema and price makes new lows?
At least in this chart of ABAN offshore.
I have not seen this in other chart ( price making new lows and below ema 36 and 200 and obv remain above ema 36 and ema 200)

OBV is disturbed with sudden volume spike (though it looks uniform) so I added price volume trend but that too is rising.

Or is this data error from Zerodha?

Nothing wrong in the chart !!! it is possible with OBV.. why ?? think on this calculation you will get the answer

Calculation

On Balance Volume is calculated by adding the day’s volume to a cumulative total when the security’s price closes up, and subtracting the day’s volume when the security’s price closes down.

If today’s close is greater than yesterday’s close then:

OBV = Yesterday’s OBV+ Today’s Volume (considered up volume)

Up volume occurs when a stock finishes a day of trading at a level higher than its open, meaning that the trading volume for the day was more bullish than bearish.

If today’s close is less than yesterday’s close then:

OBV = Yesterday’s OBV – Today’s Volume (considered down volume)

Down volume occurs when a stock finishes a day of trading at a level lower than its open, meaning that the trading volume for the day was more bearish than bullish.

If today’s close is equal to yesterday’s close then:

OBV = Yesterday’s OBV

 

[yachusai]

Hi all OBV followers,

Is this possible that obv remain above 36 and 200 ema and price makes new lows?
At least in this chart of ABAN offshore.
I have not seen this in other chart ( price making new lows and below ema 36 and 200 and obv remain above ema 36 and ema 200)

OBV is disturbed with sudden volume spike (though it looks uniform) so I added price volume trend but that too is rising.

Or is this data error from Zerodha?

Bro pls also note in important support areas we sell at break below support but big buyers buy from us without move price upwards . this is accumulation . a down bar with more volume but price not go beyond far distance from that low this is the indication of accumulation . This time OBV goes below after they buy their required quantity they move price upward . You get more accumulation picture in crude oil

 

[XRAY27]

OBV is build on candle close and volume traded is added/deducted..on this close..it got no reference to candle spread..

If dramatic changes (increases or decreases) occur to the OBV line without being accompanied by simultaneous price changes, this may indicate that an existing trend run will reverse course in the near future. As a rule dramatic increases in the OBV line during an uptrend are caused by volume surges. Under such circumstances, you will notice a sharp rise in the OBV line given a huge surge in volume added to the OBV line over a short period of time. On the other hand, during a downtrend, you may note a dramatic decrease in the OBV line, the result of a volume surge that occurs as a huge amount of volume is subtracted from the OBV line over a comparatively short time.

During a downtrend, there comes a point where the "smart money" starts buying at a time where the "average investor" is still selling. This may lead to volume surges that over time can prompt a trend reversal to the upside. Likewise, during an uptrend, there comes a time where the "smart money" starts selling while the "average investor" is still buying. Evidence of this can be seen in volume surges that over time are followed by downside reversals.

Always remember 2 points while using OBV

1.An objective evaluation of "dramatic" increases or decrease in the OBV Line (caused by large volume surges) is difficult.

2.It is not easy to determine what constitutes "high" or "low" volume activity for a given session.

 

[ncube]

OBV is build on candle close and volume traded is added/deducted..on this close..it got no reference to candle spread..

If dramatic changes (increases or decreases) occur to the OBV line without being accompanied by simultaneous price changes, this may indicate that an existing trend run will reverse course in the near future. As a rule dramatic increases in the OBV line during an uptrend are caused by volume surges. Under such circumstances, you will notice a sharp rise in the OBV line given a huge surge in volume added to the OBV line over a short period of time. On the other hand, during a downtrend, you may note a dramatic decrease in the OBV line, the result of a volume surge that occurs as a huge amount of volume is subtracted from the OBV line over a comparatively short time.

During a downtrend, there comes a point where the "smart money" starts buying at a time where the "average investor" is still selling. This may lead to volume surges that over time can prompt a trend reversal to the upside. Likewise, during an uptrend, there comes a time where the "smart money" starts selling while the "average investor" is still buying. Evidence of this can be seen in volume surges that over time are followed by downside reversals.

Always remember 2 points while using OBV

1.An objective evaluation of "dramatic" increases or decrease in the OBV Line (caused by large volume surges) is difficult.

2.It is not easy to determine what constitutes "high" or "low" volume activity for a given session.

Just to add, if the intention is to understand if there is accumulation or distribution happening by smart money one need to understand the behavior of the traders behind transacted volume. This can be understood by applying volume profile on the candle spread and if one observes most of the transactions would have happened at a fair price zone which is nothing but exchange of hands and can be ignored. What we should be interested in is the size of transactions that have happened outside this zone, if its larger above then its accumulation, below its distribution.

Hence its better to use OBV with smaller time-frame and PVT with higher time frames as in higher time-frame bulk of the transactions would have happened in the fair price zone.

 

[VJAY]

Good info about obv thanks Xray bro and ncube

 

[stocksa]

Oops ... Sorry..

Got my answer so removed my question

 

[euginsa]

Hi all OBV followers,

Is this possible that obv remain above 36 and 200 ema and price makes new lows?
At least in this chart of ABAN offshore.
I have not seen this in other chart ( price making new lows and below ema 36 and 200 and obv remain above ema 36 and ema 200)

OBV is disturbed with sudden volume spike (though it looks uniform) so I added price volume trend but that too is rising.

Or is this data error from Zerodha?

Its diversion . You may get a good move from there

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