Trading with OBV - for Beginners only !!

[aja]

yeh Union Bank bohot Dendu hai.Agar range me raha to 20 paise me ghumta hai.
Isme candle kabhi bhi shrink hoti hai aur badi badi tails ban jaati hai.:annoyed:

I wonder how some of you trade it? Timepass bhai is a big Union Bank Follower.

 

[deepsat]

I think xray says price attracts volume. Then more volumes will propel the price.
So u got confused with xray's words.
Yes mechanical system should be there for New traders, but more than that there should be clear cut rules. 1st define the rules, include when not to trade. then follow the same rule daily.
The above should be done by the students, not teachers.
Xray sir is the only one who did the above in his experiments thread. Fixed the one rule when to trade it.:clap:
Also tuna...

Yes - but it turned out to be a classic 'chicken-egg' debate. Dont want to go into that futile debate Whether price drives volume or volume drives price, i have seen that this understanding has no bearing on my trading account or my bank account :lol:

Vijay Bhai - Exactly. Am also saying the same thing. Mechanical system needs clearcut rules.Without it, no mechanical system - no ifs and buts..thats the premise of the mechanical system. When to trade and when not to trade - two essential blocks of any mechanical system.

I wanted to use the ribbon colour change but figured out its not good in my backtesting. So, back to my original trading system without any additional indicators. :thumb:

 

[aja]

Aman Bhai,Is VWAP a pure price action based system?

100% mechanical?

 

[Aman1]

Aman Bhai,Is VWAP a pure price action based system?

100% mechanical?

At least I don't use it that way(Mechanical). I use it to find my trades . Breakout as well as retracement trades and piggyback manually. It use both price and volume. so not a pure price action based system. It is a location or value based system.

 

[vijkris]

Vijay !!! yes my words are confusing many these days !!! , if rules are too much then , i cannot trade so fixed to that single point and back tested and found it useful and shared that , closed the thread since its purpose is served ..off course puchu bhai posted april fool post in it :lol: but for me it is mechanical entry and exit one !!!

i have some issue in swing trading with respective to tsl and fixing that in this holidays



vijay !!!


OBV on daily will not act as lead indicator, first study definition of OBV and then jump in joy !!!

just check any scrip in daily time frame you will find that price chart and OBV will move in same direction and almost it will look like line chart of price...why ?? you will get the answer through the definition

pls share your charts for mankind !!!!

In previous posts c r kumar bhai posted a research pdf which used obv in daily charts. Those interested should read it.
Even obv data is different in 3 tf compared to 1tf.
So looking for obv beyond small tf may not be effective.

 

[vijkris]

Viju,you are a kind man,so pls share your charts for mankind

All 3 of you pulling my leg.:lol:

In some another parallel universe I explained the double pdc concept to vivek bhai.

Most probably he didn understand or he backtested it and found it useless.

My bad, I didn follow it up.

Just for info, my both computers are not in working condition.
For next few days I am jobless until it gets repaired. :annoyed:

Just using my brother's TAB to post here..

I request vivek bhai to say frankly his observation regarding this.
And please don't pm vivek bhai regarding this or obv, I am sure he does not follow obv.

I was just testing my knowledge and teaching skills with him in another universe.

And this April month performance was quite bad again.

 

[vivektrader]

All 3 of you pulling my leg.

In some another parallel universe I explained the double pdc concept to vivek bhai.

Most probably he didn understand or he backtested it and found it useless.

My bad, I didn follow it up.

Just for info, my both computers are not in working condition.
For next few days I am jobless until it gets repaired. :annoyed:

Just using my brother's TAB to post here..

I request vivek bhai to say frankly his observation regarding this.
And please don't pm vivek bhai regarding this or obv, I am sure he does not follow obv.

I was just testing my knowledge and teaching skills with him in another universe.

And this April month performance was quite bad again.

Vijay, I didn't back test your double pdc concept. I only back tested 15obv with pivots on 3min tf, bank nifty futures, strictly as mechanical system for 100 trades, in Jan and half of Feb.

Vivek

 

[aja]

In some another parallel universe I explained the double pdc concept to vivek bhai.

as soon as you get your computer repaired,

Iss Pyarelaal ko bhi uss Parallel Universe me le jaake thodo gyaan de dena bhai. :lol:

 

[elwavetrader]

Vijkris bhai, please do take us all to that another parallel universe. If not possible then please post the address of that another parallel universe

 

[vijkris]

as soon as you get your computer repaired,

Iss Pyarelaal ko bhi uss Parallel Universe me le jaake thodo gyaan de dena bhai. :lol:

Vijkris bhai, please do take us all to that another parallel universe. If not possible then please post the address of that another parallel universe

:lol:
I do not remember the password of any of the parallel worlds. Anyway whatever I told to vivek bhai was just a trial run. I was still building the concept further.
After my computer gets repaired will share everything here only, no nèed to go anywhere else.

Just a small summary of that. To determine bias we should look for last 2 day's pdc line. If today pdc is greater than yday pdc then long bias for whole day today.

Edit- the above small summary is quite confusing. So pls don't bother about it now. Will explain later along with charts. As usual there are few exceptions also when this bias will fail etc etc.