Experiments with OBV

[HappyLife]

Thanks ...its better change colour of lines as High=red,lows=green/blue
also not showing lows in this afl when selected 2 days

@ VJAY is there any difference in calculating low of the prev day ….. (ans:- no) …… minimize the chart … Prev 2/3 days you will see prev 2days low line ploted

Change "ColorS" to "ColorH" / "ColorL" / "ColorC" ………. for high / low /close

 

[XRAY27]

This day is for obv as there is no va gap..trade 1 is good and second one is scratch trade

Price piercing 2DH or 2DL is very good setup and i got 2DH

 

[mohan.sic]

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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.

( In continuation to above )

friends,

You may find discrepancies in back tested results from person to person.
Differences may vary from very low to very high.

Reasons could be:

1. Data differences: Data provided by all service providers would not be same. open, high, low, close and Volume, may vary from vendor to vendor. Some times even minor differences in above parameters could result in discrepant results.

2. Time differences: for example a 5 minute candle from 11:00 am to 11:05 am can be taken as 11:00:00 to 11:04:59 (h:m:s) or 11:00:01 to 11:05:00
please check with your data vendor how your data is sent.
On higher time frames, this may not impact much. But on lower time frames like 1 mt, results will be discrepant due to this.


Above factors will effect test result of any indicator. But i want to mention it specially in this case ( OBV ) because, obv is not a oscillator. Good Data is the key to experiment on this.

3. Be sure OBV formula is correct in your application/software.
Do not expect all TA software's, Charting applications, Broker terminals will have same indicator formula/same calculation method for a indicator.

 

[Subhadip]

Any one NF daily time frame OBV chart with the OBV afl.

XRay bro how it looks.

 

[VJAY]

Any one NF daily time frame OBV chart with the OBV afl.

XRay bro how it looks.

 

[Smart_trade]

Any one NF daily time frame OBV chart with the OBV afl.

XRay bro how it looks.[/QUOTE

Maruti Suzuki daily chart with OBV.

Smart_trade

 

[Subhadip]

I have no idea of OBV. So in NF or spot nifty where buying and where selling. Just tell me dates or chart marking please

 

[Subhadip]

Maruti Suzuki daily chart with OBV.

Smart_trade

Chart not visible sir

 

[XRAY27]

Any one NF daily time frame OBV chart with the OBV afl.

XRay bro how it looks.

i'm not using this for daily just sticking to RF

 

[Subhadip]

Any one NF daily time frame OBV chart with the OBV afl.

XRay bro how it looks.[/QUOTE

Maruti Suzuki daily chart with OBV.

Smart_trade

Now can see chart.

Where to buy and sell sir