My System - My trades.

So how does the markets move in any time frame. After a breakout the market goes into a sideways trend and contemplates its next move. This is the time when we encounter whips by any method. And then we have a breakout or a fakeout. And it goes on like this. So how to go about this process.

So as told by ST ji, we mark the threshold levels during this sideways move on our charts. And then when a breakout appears we trade it and add to our position in this period for maximising our gains. How to tackle Fake outs. Fake outs happen to wrong foot the traders. So whenever a BO happens, be very alert to BO failures aka fakeouts, because the counter trends after a failed BO are very profitable to trade as well. Sometimes the markets just go back to test the BO level of an earlier BO. This is where Support and resistance come into play specially of higher TF. (say if you are trading off 1min.charts then the S & R of the 5min or the 15min charts come handy.

These S and R's can be of both price and OBV. This was the basis of my advocating longs on thursday till the OBV was making a higher low in 5min TF. But this view was negated once we broke those support levels. This uptrend in OBV was prevalent from 20200-300 levels, so a good 700 points in this swing.

Can anybody trade this chart in isolation. (this is the volumes chart of BN)

This is the same chart. I am sure you can trade this in isolation too just like a price chart.
Just observe the OBV is trending up till it is making higher lows wrt to 200EMA (Green line) once it makes a lower low it goes in for correction only to resume the uptrend when it again starts making higher lows wrt 200EMA. See how crisp clear and easy it is. Who could have been short positionally looking at the uptrend in these charts. (By the way these are compressed 1min. charts of OBV since dec.)

Show these charts to the Nay sayers who say you cannot base your trades off 1min.charts

This chart has been a screaming buy from 10feet distance also. Just look at it go from the bottom left side corner to the top right side corner.

So one initial BO (Green line) followed by 5 subsequent tendline BO's
Also observe that it really took off after conquering the zero levels. The shorts in the system got covered, giving more credence to the initial breakout.

This is the corresponding price chart with the same information.

So keep your trading simple. But now time to be cautious as you can see a big divergence between price and OBV in these charts. Price made a higher high but volumes(OBV) did not and the OBV has made a lower low in 5min.charts as well. Whether this would be a retacement or a full fledged reversal, only time would tell, but looking at the evidence at hand, certainly not a time to be brave and go long. The market needs to correct this anomally by either volumes going up or prices falling.