Intermediate update on my experiment on OBV:
As I keep on continuing my experiment with OBV (like many of you are doing) :
Apart from EMA Zone Segregation using 200 EMA - This is what you can try playing with:
- Strength of OBV (RSI on OBV)
- Volatility of volume instead of the price (Yeah may sound stupid)
My undertrial system ("The Untested Monster) and the Recent One (KKST ) let me declare, OBV with a volatility band around it is generating far better triggers instead of going simply by its strength (RSI). You can use any, I am using BB.
Of course you are not looking for contra here - only the entry in direction of trend.
on Nifty, KKST gives an earlier entry compared STI MTF (muti time frame) flip (15 mins) with more than 80% of the time (limited testing as I need past future data, spot will not work) - this gives you an edge. If we combine the entry generation zone with know S/R area using any common method (Fractal, Pivot etc) - we can nullify the fake signals in a great way.
Testing of KKST continues.