The Best Trading System

[varunkochhar]

There have been times where i have made more than 5000 to 8000 trading in cash shares of yesbank intraday, starting with 100 shares and adding. The reason i sometimes trade in yes bank is that it gives a good 30-40 rupees movement many times. My initial risk in such cases is never more than 3 or 4 rupees (SO around Rs.400)

 

[varunkochhar]

Southpaw ji just look at the chart you have posted. On 19th. January though the price was going up but there was selling taking place (distribution) as is so evident by OBV going down nicely. The true colours were revealed the next day when it fell. That is why i claim that OBV is a leading indicator as it was showing the inherent weakness much before it was revealed in price. As far as managing Stops is concerned one thumb rule that i adopt at times is to keep the SL as the last pivot high in price before OBV breaks down below 200EMA.

 

[varunkochhar]

So 272 from Jan18th and around 264 today.

 

[varunkochhar]

Vijay ji that is a million dollar question. But then again sideways is a very relative term. What may appear to be in a sideways trend may actually be trending in a higher time frame. I guess you just have to live with them. Endure what you cannot cure.

 

[varunkochhar]

So best trade setups using OBV are based on breach of 36EMA and 200EMA. So wait for proper setup and then trade. Breach of these levels give excellent movement.

 

[raj_jain1]

Varun ji can u pls explain your trading setup with chart.i m newbie here.

 

[Tuna]

i hope i am not messing up your thread.

No you are not. Was going through all your posts. Sounds great.

 

[yachusai]

when OBV goes below 200 ema short

when OBV goes above 200 ema buy

if any mistake pls correct me . thankyou for Tuna and varun bro

 

[varunkochhar]

Raj Jain ji Tuna ji has a good system set up in place. He has provided you an altered version with a few of my inputs, and if it is giving you good results then why do you want another system. Just determine to have the information both price and volume are giving you and act accordingly. To be able to use any system to the best one needs to analyse what the system is all about and till the time you do not address this issue yourself, no system would be good enough. To sum it all a good sustainable trend has both price and volume going in the same direction. When they are not in sync then that anomaly is corrected by the market by one of them reversing. You just have to be vigilant enough to observe it.

 

[varunkochhar]

You got it right Yachu Sai ji.