Bact test !!!
1.Always backtest a given logic with keen interest and accuracy,backtesting cannot be done with just at a glance or roughly
2.Test at least 90 trades
3.Write draw down and arrange your capital according to that
4 Accuracy should be at least 50 % if not it will cause mental pressure to trade
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xray, There is a drawback in this method.
You may not observe its fault on Nifty, BN and high volume stocks very frequently, but one cant escape it.
OBV formula: when price close is > than its previous close, current candle volume will be added to previous obv.
scenario: If current candle volume is Huge and there is a slight upward movement in Nifty ( lets say only 10 points ) : Here you will see a sharp up move in OBV ( due to huge volume ) and a little upward movement in Nifty. Now after that even if Nifty breaks down that 10 points and falls further to new low's
with normal volumes -- OBV will not come down below its PDC.
In that sense you will start looking for Buy signals on a down trending Nifty just because OBV is above its PDC.
This is not about your method. I am only pointing at a flaw in OBV.