The Best Trading System

[hmp]

Dear Tuna ji
Is it possible to plot this OBV setup on kite? If yes then pl. guide us how to do it.
Thanks & regards.

 

[yachusai]

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First add OBV from studies then add moving average in moving average settings tab make this settings you get moving average on OBV . thanks Tuna bro

 

[yachusai]

Varun Bro pls post your 17jan banknifty intraday trading chart with sl it helps my learning thankyou

 

[varunkochhar]

 

[sanjoy_roy]

Sanjoy ji under normal conditions, both OBV and price should be in sync. Whenever there is an anomaly you get very good signals. OBV being a leading indicator, most of the times gives an early entry thereby reducing the SL significantly.

Varun Ji,

Does this mean taking trades during the anomaly will result in high-probability ones rather than the other ones?

and if yes, then should we rather wait for those trades, far-and-few, and avoid the everyday ones?

(Would take this opportunity to applaud you on your winning system. It must have taken you time to develop and garner consistent returns. Well done.)

 

[varunkochhar]

When you look at the chart, you get a buy signal at 3581 (Green horizontal line) by both OBV and Price as both of them went above 200EMA (blue lines). Probably one could have got this signal by using any indicator also. But here is where it gets interesting.At around 5:20 price went below 200EMA. Any indicator one would have used would have made you exit your position. But just look at OBV, it did not go below 200EMA and gave you an assuarance that price may not fall and instead of exiting your position at around 3620 you could ride the trend to 3660 levels. The difference in profits was almost double 80 instead of 40.

 

[varunkochhar]

In fact i would have added to my position once price came back above 200EMA and thus would have quadrupled my profits.

 

[varunkochhar]

Don't you think the charts are so objective and easy to comprehend. So much less noise.

 

[varunkochhar]

Sanjoy ji the anomaly leads to a divergence trade, but the level of entry is very important in a divergence trade as the divergence at times goes on increasing but yes these trades are very profitable and my favourite too.

 

[varunkochhar]

Just look at the OBV pane. Such clean signals, whereas price is all over the place.