Trading with OBV - for Beginners only !!

[vijkris]

"Guns at you" meaning questions will be posed to you, you won't get killed at the end of it

Vivek

Haha. If I share what I understood then it will create more confusion. You got confused na because of me?

 

[vijkris]

:lol::lol: Suri is still trying to understand what hit him. He is probably trying to understand the meaning of 'constructive criticism' and it might take years :rofl:

I remember xray telling in one of his OBV posts that 'price propels volume' in a casual way and that is his belief. But the thread owner started posting dozens of posts to tell that 'volume drives price' and it did not stop there. He started posting innuendos(indirect mentioning of posts that dint fall under his belief) and suddenly vanished. Came back again and vanished.Cycle is still continuing

I was crucified once as well for telling that the 'thread has run its course as there were more confusion and personal ego getting involved' and 'new variable is being added every week'. I saw nothing wrong in saying that as that is what was happening..everything is there in that thread. Nobody can deny that. Infact, i clearly told in that post that not every reader of the forum will understand the same way and people will ask questions. But, he dint like that as well.

I also mentioned that newbie/struggling traders are better off with mechanical system and any kind of discretion(or random inclusion of variables every week to show winning trades) is a suicide for them. Again, innuendos started (referring my post) and i stopped posting altogether.

So, any opinion against his belief has been ridiculed/laughed at/disparaged. All these ridiculing will definitely not solve the purpose of the thread(teaching/sharing) if that is the actual intention. And playing this threatening game that 'will never post anything again here' and returning back again after few weeks is the only lighter part of that thread

So this is the lesson learned - never post anything questioning the holy indicator OBV (even with charts..nice examples of relinfra and SBI) .. Simple !!

I think xray says price attracts volume. Then more volumes will propel the price.
So u got confused with xray's words.
Yes mechanical system should be there for New traders, but more than that there should be clear cut rules. 1st define the rules, include when not to trade. then follow the same rule daily.
The above should be done by the students, not teachers.
Xray sir is the only one who did the above in his experiments thread. Fixed the one rule when to trade it.:clap:
Also tuna...

 

[Aman1]

Volume concept is tricky. Location is important. In the absence of supply even small lot traders can propel price to a small distance and if big fish sees this they will sell immediately this is supply swamping demand. When small lot traders sell in the absence of demand they push price down and if big institution see this they will buy at once. This is called demand overcoming supply. Sometimes a variation will come into effect volumes will come in abundance but price will not buzz. This is called absorption.

So location is important. Suppose after a breakout volume keep rising and price moves up this is legit BO. And at another time suppose volumes do not come after BO and move fizzle out . This is BO failure. yet another time after BO volume do not come but price still move up. This is indication that seller have withdrawn and so on ...

So it is not that easy to interpret volume. what is to be seen is if price is validating the volume in the shape of price followthrough or not.

 

[Smart_trade]

varunkochhar has asked to close his thread. So, Vijay all guns training at you now

The thread starter has requested closure of his thread as he has posted all that he wanted to share.So people who want to share their charts and other observations can do so in few other threads on the same topic.

Smart_trade

 

[aja]

Volume concept is tricky. Location is important. In the absence of supply even small lot traders can propel price to a small distance and if big fish sees this they will sell immediately this is supply swamping demand. When small lot traders sell in the absence of demand they push price down and if big institution see this they will buy at once. This is called demand overcoming supply. Sometimes a variation will come into effect volumes will come in abundance but price will not buzz. This is called absorption.

So location is important. Suppose after a breakout volume keep rising and price moves up this is legit BO. And at another time suppose volumes do not come after BO and move fizzle out . This is BO failure. yet another time after BO volume do not come but price still move up. This is indication that seller have withdrawn and so on ...

So it is not that easy to interpret volume. what is to be seen is if price is validating the volume in the shape of price followthrough or not.

maane Volume could be a fake and the price itself is the leading indicator?

 

[Aman1]

maane Volume could be a fake and the price itself is the leading indicator?

Both are important. don't rely much on this lagging- leading concept. People can make great deal of money with lagging indicators and lose money with leading indicators or vice versa. And many successful traders donot use any indicators.


The important thing to find out is what works for you and to stick with it .

 

[XRAY27]

I think xray says price attracts volume. Then more volumes will propel the price.
So u got confused with xray's words.
Yes mechanical system should be there for New traders, but more than that there should be clear cut rules. 1st define the rules, include when not to trade. then follow the same rule daily.
The above should be done by the students, not teachers.
Xray sir is the only one who did the above in his experiments thread. Fixed the one rule when to trade it.:clap:
Also tuna...

Vijay !!! yes my words are confusing many these days !!! , if rules are too much then , i cannot trade so fixed to that single point and back tested and found it useful and shared that , closed the thread since its purpose is served ..off course puchu bhai posted april fool post in it :lol: but for me it is mechanical entry and exit one !!!

i have some issue in swing trading with respective to tsl and fixing that in this holidays

I am against the closure of this thread. I am quite sure there are few people who have understood the method and they will share it here.

Puchu's charts are an encouragement to everyone. :clap:

I am not worthy of Sharing any charts bro.

vijay !!!


OBV on daily will not act as lead indicator, first study definition of OBV and then jump in joy !!!

just check any scrip in daily time frame you will find that price chart and OBV will move in same direction and almost it will look like line chart of price...why ?? you will get the answer through the definition

pls share your charts for mankind !!!!

 

[aja]

pls share your charts for mankind !!!!

Viju,you are a kind man,so pls share your charts for mankind

 

[Aman1]

Viju,you are a kind man,so pls share your charts for mankind

:lol::rofl::clap::clapping:

 

[Aman1]

maane Volume could be a fake and the price itself is the leading indicator?

For me leading indicators are:


pivot points

Elliottwave

Fibonacci

sentiment

S/R levels

Value or location based indicators:

Vwap
MP
Volume profile

Confirmation /information base indicator:

Volume
Price