General Trading Chat

[XRAY27]

Xray, Subhadeep bro's,

The OBV indicator advocated by Varunji is robust as volume plays an important role in holding/entering the trade; however OBV is not the primary indicator it’s his years of experience which is allowing him to trade his system profitably. He is able to identify & combine OBV with multiple systems based on current market situation and hence it’s confusing to people following his methods. However one should be humble enough to accept positive criticism which will definitely help in improving & evolving the system.

Long time back I was using OBV and used to consider it the Holy Grail.., however later I found that the main challenge with OBV is its volatility as it takes into consideration only the total volume of the candle and not the price action associated with it. When there are bulk trades or heavy volumes it used to distort the indicator completely. Later I read a good article by David G. Hawkins on modified Volume-Price Trend (VPT) Indicator (http://edmond.mires.co/GES816/20-Modified Volume-Price Trend Indicator.pdf) which had drastic improvements over OBV. It reduces the volatility as also gives clearer signals when compared to OBV.

I am not imposing, however if one apply VPT instead of OBV in the systems explained by Varunji or any of your current systems you can see immediate improvements. Please don’t take my word for it do your own homework.

Subhadeep bro, Applying VWMA (Volume weighted moving average) on your MA crossover system gives excellent results. Please check the details on VWMA given in the following URL: https://www.tradingsetupsreview.com/volume-weighted-moving-average-vwma/

Bhai !!! Now moved lot in VA (volume analysis ) before varun started this thread ,OBV does take spread of the candle, yes we all know ,also volume anomaly !!! but for start OBV is best !!!every body have to move to later stage !!! i'm not a class pivot (swing) trader ,nor sole price action fellow, combo man !!! PVA with area (DS/MP/VP)

Thanks for the suggestion, i will watch VPT !!!

 

[XRAY27]

Why second line xray ji?

TC bro !!!
Some times GFDL will have some connectivity issue (rare) ,so just subscribed this for back up in my other laptop, nothing else

 

[Smart_trade]

Sir, in below chart I went long near TDST support on daily, which was fruitful. How to time such an entry better, should we use this daily TDST support as reference and enter on hourly? What should be stoploss for such an entry? View attachment 22859

Daily TDST gives a strong support and as we are in an uptrend, we have to be ready to buy near the support. But daily candles give large stoploss so what I do is mark a horrizontal line on daily TDST and then change the timeframe to hourly or even 15 min ....once we come near the TDST line, a pivot high above the TDST line ( pivot in lower timeframe) is my entry point and the pivot low below the TDST is the iitial stoploss.......this has been my entry technique not only for TDST but all the trades I do....your level is on long term but entry and initial stoploss are on short term charts.

Smart_trade

 

[vivektrader]

Daily TDST gives a strong support and as we are in an uptrend, we have to be ready to buy near the support. But daily candles give large stoploss so what I do is mark a horrizontal line on daily TDST and then change the timeframe to hourly or even 15 min ....once we come near the TDST line, a pivot high above the TDST line ( pivot in lower timeframe) is my entry point and the pivot low below the TDST is the iitial stoploss.......this has been my entry technique not only for TDST but all the trades I do....your level is on long term but entry and initial stoploss are on short term charts.

Smart_trade

Sir,
Once we enter the trade as per above, how do we move (trail) initial stop loss(what TF)?

 

[toocool]

TC bro !!!
Some times GFDL will have some connectivity issue (rare) ,so just subscribed this for back up in my other laptop, nothing else

This is what I wanted to know

When most people search for saving money with cheap data you have 2 official data feeds....... If one is serious enough then money saving should not be a priority in trading, because you will make enough when right....... Not only that, you also get to deduct it as an expense in income tax, so why save money?

Kudos

 

[Smart_trade]

Sir,
Once we enter the trade as per above, how do we move (trail) initial stop loss(what TF)?

Lower timeframe is only for entry and initial stoploss......after trade moves in favour, trail on daily timeframe....highest low in the upmove or something similar...

Smart_trade

 

[deepsat]

Xray, Subhadeep bro's,

The OBV indicator advocated by Varunji is robust as volume plays an important role in holding/entering the trade; however OBV is not the primary indicator it’s his years of experience which is allowing him to trade his system profitably. He is able to identify & combine OBV with multiple systems based on current market situation and hence it’s confusing to people following his methods. However one should be humble enough to accept positive criticism which will definitely help in improving & evolving the system.

Long time back I was using OBV and used to consider it the Holy Grail.., however later I found that the main challenge with OBV is its volatility as it takes into consideration only the total volume of the candle and not the price action associated with it. When there are bulk trades or heavy volumes it used to distort the indicator completely. Later I read a good article by David G. Hawkins on modified Volume-Price Trend (VPT) Indicator (http://edmond.mires.co/GES816/20-Modified Volume-Price Trend Indicator.pdf) which had drastic improvements over OBV. It reduces the volatility as also gives clearer signals when compared to OBV.

I am not imposing, however if one apply VPT instead of OBV in the systems explained by Varunji or any of your current systems you can see immediate improvements. Please don’t take my word for it do your own homework.

Subhadeep bro, Applying VWMA (Volume weighted moving average) on your MA crossover system gives excellent results. Please check the details on VWMA given in the following URL: https://www.tradingsetupsreview.com/volume-weighted-moving-average-vwma/

For those of you looking for the code of this indicator, here is the link..it has code for multiple platforms..

http://traders.com/Documentation/FEEDbk_docs/2010/04/TradersTips.html

BTW, this website has 100's of indicators..just keep changing the year and month numbers in the website address link...

if one is not satisfied with his/her trading results, this website can be a great way to blow few more rupees (by trying few more indicators)

 

[ncube]

Bhai !!! Now moved lot in VA (volume analysis ) before varun started this thread ,OBV does take spread of the candle, yes we all know ,also volume anomaly !!! but for start OBV is best !!!every body have to move to later stage !!! i'm not a class pivot (swing) trader ,nor sole price action fellow, combo man !!! PVA with area (DS/MP/VP)

Thanks for the suggestion, i will watch VPT !!!

Yes, I know Xray bro, I have been following your style in the forum. I was just implying that Varunji should be humble enough to accept that one system is not better than the other. Its the trader who makes it better or worse. OBV have its own limitations & challenges.

VPT/MVPT is just a improvement on OBV based on how it is calculated, instead of considering the total volume it considers the volume in proportion to the change in price from the previous candle. The pdf I have shared gives good details on how it is derived.

 

[msa5678]

Why the sudden fall in BNF? Any bad news?

Sent from my SM-G610F using Tapatalk

 

[ncube]

So this VPT has amibroker afl?

Can you share please

Sorry TC bro, I do not use Amibroker and since now I trade at higher time frame my dependency on indicaters is not much. Thanks to all the screen time I have graduated to just plain candle charts with few lines... however initially these indicators helped me a lot.