Trading with OBV - for Beginners only !!

[Vipul_84]

Thanks niftytaurus bhai :thumb:

here the 1 year chart of bnf of daily charts with 5 period OBV
thanks

 

[xitija]

OBV evolved a lot since my last visit.

 

[kimanjo]

Too bad I am not an amibroker user or else I would have understood Bo/Bd in OBV chart visually. This is just what I need. I'm glad to have stopped by here to learn things from the master.

 

[manohara]

Filter =( Cross(OBV(),EMA(OBV(),200));


throwing an error 30 syntax error

how to resolve it....

 

[vijkris]

Filter =( Cross(OBV(),EMA(OBV(),200));


throwing an error 30 syntax error

how to resolve it....

There is an extra open bracket. remove it.

filter = Cross(OBV(),EMA(OBV(),200));

So u r doing some exploration to scan scrips. :thumb:

If possible pls share it to the community as well after completion of the code.
No compulsions.. :thumb:

 

[vijkris]

Lot of discussions happened outside the thread, so collecting it and posting it here.

Vivekbhai, me too a noob.
still learning
Half knowledge is always more dangerous than zero knowledge, so I will not take chance of opening thread and ruining this beautiful method. But we can post our charts and queries in Varunji's thread. Also I will try to post charts in real time in Varunji's thread as and when possible.

Any one using daily TF OBV.

I do not have amibroker or OBV. Can u post chart of NF daily with OBV. Just for seeing

Vijay bhai, this obv thing looks all rosy when market is trending, it struggles badly in sideways (just like any trend following method).

Vivek

Can u tell me any method where u can identify sideways at starting

yes vivek bhai....but its for positional holding we some how filter it using 200 ema ...my views

Vivek ji have you tried using OBV before trashing it. Pls show me some setup where it has failed misreably in daily charts. You have to understand that OBV is a leading indicator and it will give better results than all the other indicators which are based on price. This indicator is based on volumes. And Volumes more often than not precedes price. It does not predict the market movement, rather leads it.

Just a question.

Can we mix two.

Volume and price.

Like pivot in price and OBV in volume.

So we can have more edge.

In my method no chance of volume using as main indicator.

Subhadip ji, we use price as confirmation. So No trade without consulting both. Because only price and volumes give the complete picture.

Yes,combining both eliminate many whipsaws.plus more confidence as volume is in our favour.

ST

Yes !!! You can mix it up !!, i'm finding my self comfortable with RF in daily so not using this on daily charts ,intra day i'm using it along with MP upon specific conditions

Yes bhai, that's what I've been doing for quite sometime now.
Mostly active on the Day Trading futures thread.

The actually components of indicators are either Price or Volume.
so trades are Price Action which includes pivot trading and volume bars to support the price pattern.

Those posts get buried in that thread but I found some images on my lappie

Checkmate ji the indicators that you talk about are lagging and derived from price. This information can be directly accessed from price as being done by Subhadip ji and Xray ji. I personally have stopped using all indicators as they were adding to my indecisivenes and confusion.

Subhadip ji try using volume as a main indicator for once and take confirmation from price. Beleive me you will see for yourself how much more effective it is. Price would give you delayed signals than Volumes. And Volume (OBV) breakouts are truer and longer lasting.

Sure. Thanks. Will experiment this week end

Is this OBV method only suitable for 1 min chart? Or else can be used for 1 day chart / to identify uptrend?

Sent from my MI 3W using Tapatalk

Vivekbhai,

Check the BNF chart of 8 Feb 17,
From 9.15 to 1 PM OBV line was flat, around 1.06 OBV gave indication of going down, at 1.33 OBV BD and price gave false BD (Whipsaw), @1.52 PM price made high, but OBV never went above its range established in day earlier. Price gave false impression of breakout, but OBV line kept you out of long, at 2.30 real breakdown in both price and OBV.

In side ways it kept you out of trade, in false breakout in kept you out of long, for skilled trader it would be signal of taking short at most favorable price with reasonable SL, and in breakdown it went 200 points down. With Ribbons you could have shorted at 20345 between 2.15 pm to 2.25pm with SL of 20385.

Offcource it is hindsight analysis, if you can do it in real time it is an leading indicators painting rosy picture in ledger.

Varunji is able to do it since he owns the system hence he calls it leading indicator.

Aside to all that see all three ribbons in OBV pane, they were RED most of the time.

MB, what about 200point upmove from bottom, where the obv stayed below 200ema, below yesterday's obv closing line, all three ribbons were red?


Vivek

Vivek ji first of all you would have to remove the negative image you have of OBV in your mind. In the example given above the 15min. OBV ribbon changed to blue around 20200 levels after giving a short signal at 20350. If 150 points are not good enough for a day trader then i guess robbing a bank would be a better alternative. Sorry for my sarcasm.

See the sharp retrace in OBV line, it told you of imminent and ferocious upmove. Ribbons may take time to average out data and change colours. But see plain OBV line.

I am actually using pivots/rally decline of OBV, Ribbons rarely, as I trade mostly from mobile.

You have to understand the logic behind these ribbons. If one ribbon turns red it does not mean that the markets are going to collapse and never recover. You need to have a reasonable greed level to exit 50/100/150/200 points. If you are expecting 20000 points then you would definitely be disappointed with OBV.

One chart for this please if free.

Take time frame of 2.50 PM to 3.08, price plunged but OBV was holding giving you chance to go long.

Planing to rob ????

:rofl:

Plain price and OBV chart

MB ji excellent. You are following the essence of this method to the T. The ribbon method was brought about for people who could not trade OBV action by observation only. Kudos

I have no negativity against your system, I don't mind the sarcasm also, you might have forgot my post praising your work, and words in my posts are not for no reason.
You won't find me posting often, mostly there are questions for ST sir.
The following is what I feel:
1.your system is not entirely mechanical, there are discretions involved, since you are trading it for years, you see things in better perspective.
2.The chart was posted by MB, it is not about getting 150points or a 20000 point move, the chart is being marked on hindsight, if the first trade was a whip, 2nd was successful than there is no harm in saying that probably third one was missed.
3. In range bound days no trend following system works, OBV is no exception.

Without prejudice.

Vivek

Thanks to you Sir.

If trading is ship, then ST Da is light house for me, his teachings act as light house to keep the ship from capsizing and giving course of navigation, Subhadip Sir's teachings were engine of the Ship, and you have provide rudder.

Now it is my duty to learn the craft of sailing in all weather all seas. And set sails to freedom.

Vivek ji i trade 1min. charts. Everyday is a trending day in 1min.charts. The moves maybe of 30-40-50 points but with adequate adds they become a tidy sum. It was not my system that i tried to evolve. It was our system. I don't really need a system, with so much of screen time i can trade literally of the screen. I have never said that this system would make you successful in trading. All i said was that it will definitely give you an edge. Those of us who know the importance of an edge would grab this opportunity with both hands. The other good thing that the ribbon system was that it gave you crystal clear entries and stops. There was no bias in it. Which ones you took or not may be construed as a bias. The sl's were relatively small and manageable and one is free to avoid a trade if the SL is out of one's comfort zone. It is not about praising me or the system, it was about constructive criticism and ways to evolve it better. Just trashing it would not do.

Small query on this.
Here you have used PDC on OBV.Earlier we used to use 200EMA on OBV.
Which one is the correct?I plotted both and sometimes I see both(PDC and 200EMA) conflict each other
i.e;OBV is above 200EMA but below PDC.

Vivek ji again you are missing the point. The charts may have been marked on hindsight but the signals were generated in realtime. It just gives you a trade. It does not predict the 100% outcome of the trade. You always have a well defined SL when you take the trade. SO there are no surprises as to how much you can lose. That is the only thing 100%. The quantum of your loss as per the sl thrown up by the system. You can take position size accordingly.

Dear MB,
Whats the red line in your OBV pane? is it ydays close line?

Aja ji how do you use support and resistance line in price charts. Use these lines the same way. (meaning use the one closest to the OBV line) simple.

Thats the PDC on OBV he's using.
AFL is in Xray Bhai's thread.

Am not at all trashing the system, even this morning I asked Vjay bhai for OBV 5 afl. I am trying to find out the best way and favourable conditions to use it.

Vivek

Thanks Vivek ji i am always looking for ideas to better OUR system.

 

[vijkris]

Part two......

OBV is above 200EMA=Long
now we recently added PDC concept.

OBV is below PDC=Short
but OBV is above 200EMA=Long

if I select the closest to the the OBV then whats the use of it?
F1 or F2,I have to press anyhow.Yeh to Tukka ho gaya Ji.

I think I am not able to put my query properly?
MB/Varun Ji?

Vivek ji and others, OBV is not something which you use or not use under certain conditions. If you have understood what it does, you need to use it all the time to get a complete picture given by volumes and price. OBV effectively shows volume action which is a must for a good trader. There should be no discretion on its use. Just like price, one can trade OBV charts also in isolation without looking at price literally.

Aja ji if the price of say dlf is at 105 and the next resistance is at 110 and support is at 100. Would you short or buy ? your answer would give you the answer of your earlier question.

Added image to clear the cobwebs in my mind.

Aja ji in this DLF analogy the 110 resistance is like PDC in OBV as you mentioned. 100 support is like the 200EMA line in OBV and 105(current price) is the current value of OBV.

You would take the trade on breach of either with the other as the SL. Right na. The doctor has not recommended to be in trade always.

IMO if one trade only change colour of ribbon its not helps you see too many whips ...also ledger too better to combine it with your existing PA trades

Vjay ji i beg to differ a bit. I feel one only needs to take trades in the direction of the bias.(which would have 3/4 reference points now in a day). No contra for me. PA would also throw up contra trades.

Now since few people have been using this method with PDC bias just show one day where one has lost a lot so that we may analyse. If you are not going to use the market's intraday bias then there is no point of using OBV.

200EMA vs PDC on OBV is very contradictory.
I will always keep fighting and talking to myself like this?

OBV 200EMA ke upar hai,isliye ab BO aate hi long lena hai,lekin yeh to PDC ke niche hai
maane short ke liye wait karu?
Short side BO aate hi short le liya.
Fir trade fail ho gaya..aare setup ke hisaab se long hi tha kyu ki 200EMA ke upar OBV tha,maine short nahi lena tha,SOH rehna tha..I dont have patience

Dear varunji,
I used to see this method in live since some days now...if only ribbon colour we look for entry its not good ...if not a trending day we see many good numbers of whips its only my veiws...
this 3/4 time ref points you given today only...so need to check it in live from monday

AJA ji aap supports and resistance ko kaise use karte ho ?
Support tootne par short karte ho na aur resistance ke uppar jaane pe long karte ho. Ek minute ke liye dimaag se 200EMA aur PDC terminology nikaal do. Ab sirf OBV line aur 2 line chart par nazar aayegi. Bas in do lines ko support aur resistance maan ke trade karo. Ab bhi samajh nahi aaya to phir poonch lena.

For 1 tf my views also the same..
For 3/5 tf, the above view does not apply, as it has big sl and it effectively saves from whipsaws.

may be as you are Btested it ...I checked it on 1tf only ...Please share your BT findings

Aja bhai,

WIthout seeing price chart, I can tell you, on breach of PDC of OBV, price would have gone south, since OBV was above 200 EMA, be quick to book profits, here in this chart 200 EMA was not touched, in case of breach of 200 EMA, you have to trail SL. Once OBV stabilized above 200 EMA, broke recent high it was a juicy long trade.

Kindly check the chart. Try to gain screentime by barreplay in AMI it will automatically clear lots of cob webs.

thik hai Varun Ji.

yes MB,very accurate reading :thumb:

MB, you have crystal understanding of the OBV concept, why not start a thread for us noobs. Your charts will be buried here. I appreciated the value of using volume in trading even before I read about obv. What do you think?


Vivek

Your take, then they will be buried there.
Anyways thanks.

Vivek

Vivekbhai,

seriously I am not knowledgeable/mature enough to run the thread.
As Varunji's thread runs too fast, if you wish I can post in Vijaybhai thread.

The day I am confident enough, I will open the thread.

As if I am an expert here.
In that case the obv thread which I opened should be closed.

How to close a thread..? We have to pm moderators kya aja bhai ?

 

[wabuf]

Vijkris bro .. trading with new method ?
yeh main page pe sab volume ki baat kyu karrhe ??

what happened to VWAP standard deviation ?? then order flow analysis ?

i saw you there once ...very long back ..

long back i said i want to understand vwap .. you directed me to some link .. i thought let me JUST see whats vwap is about .. :clapping:

 

[vijkris]

Vijkris bro .. trading with new method ?
yeh main page pe sab volume ki baat kyu karrhe ??

what happened to VWAP standard deviation ?? then order flow analysis ?

i saw you there once ...very long back ..

long back i said i want to understand vwap .. you directed me to some link .. i thought let me JUST see whats vwap is about .. :clapping:

OBV as such is a new method for those who didn have any method previously.

Myself already had vwap.. now obv also included in the arsenal to increase the probability...

In this image u will see the band to band signals during sideways phase caught accurately by vwap. Am not hopping methods for sure. :thumb:

I am not following OFA, as it is entirely different method...

 

[manohara]

There is an extra open bracket. remove it.

filter = Cross(OBV(),EMA(OBV(),200));

So u r doing some exploration to scan scrips. :thumb:

If possible pls share it to the community as well after completion of the code.
No compulsions.. :thumb:

Thanks vijkris ji.

yes definitely , if results are good...