Trading with OBV - for Beginners only !!

[wisp]

yesterday pdc means - yesterdays close

what is today PDC.

How can today have previous day close.

It should be either -
1) cmp > pdc ( close )
2) current obv > pdc ( obv )

vijkris,

Is it based on - Current day and yesterdays data OR Current day, yesterday, & Day before yesterdays data

Kumudhan ji also understood, i think.
Line drawn today 1st may is based on yday, 30 april close value. And line drawn yesterday was based on 29 april close value.
So u have 2 horizontal lines.

When learning trading, it is very easy to get caught in terms and lose the big picture. I had this problem while trying to read the VWAP thread.

Today obviously has a previous day, so there's no question of how can today have PDC? But see how easily we can get caught up in wrong thinking in trading! The simplest of things end up looking so complex.

 

[vijkris]

When learning trading, it is very easy to get caught in terms and lose the big picture. I had this problem while trying to read the VWAP thread.

Today obviously has a previous day, so there's no question of how can today have PDC? But see how easily we can get caught up in wrong thinking in trading! The simplest of things end up looking so complex.

Yes. It is simple but yes it is confusing if u don't know meaning of terms. Many people don't know meaning of bo bd as well. So is good that mohan ji asked it. :clap:
Hope the explanation using dates has made it crystal clear.

U r market wizard anyway,.

Next step is to trade in that direction using price action strategies. That everyone has to develop on their own or borrow someone else's strategy.

 

[mohan.sic]

Kumudhan ji also understood, i think.
Line drawn today 1st may is based on yday, 30 april close value. And line drawn yesterday was based on 29 april close value.
So u have 2 horizontal lines.

Just a small summary of that. To determine bias we should look for last 2 day's pdc line. If today pdc is greater than yday pdc then long bias for whole day today.

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So all put together - Your idea is to analyze today's bais based on previous 2 days data.
From your example it is - May 1st bais would be positive if April 30th OBV close is greater than April 29th OBV close.

Am i correct in understanding.

 

[vijkris]

Just a small summary of that. To determine bias we should look for last 2 day's pdc line. If today pdc is greater than yday pdc then long bias for whole day today.

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So all put together - Your idea is to analyze today's bais based on previous 2 days data.
From your example it is - May 1st bais would be positive if April 30th OBV close is greater than April 29th OBV close.

Am i correct in understanding.

Yes. That's correct. :thumb:

 

[mohan.sic]

When learning trading, it is very easy to get caught in terms and lose the big picture. I had this problem while trying to read the VWAP thread.

Today obviously has a previous day, so there's no question of how can today have PDC? But see how easily we can get caught up in wrong thinking in trading! The simplest of things end up looking so complex.

Confusion is because i dint even expect that last 2 days data values are being used to analyze today's market. And moreover current days OBV value is not brought into picture in analyzing current day's bias. very unusual.

 

[backbench]

Confusion is because i dint even expect that last 2 days data values are being used to analyze today's market. And moreover current days OBV value is not brought into picture in current today's bias.

2 PDC means price or OBV or both? One chart will clear all doubts.

 

[XRAY27]

Confusion is because i dint even expect that last 2 days data values are being used to analyze today's market. And moreover current days OBV value is not brought into picture in current today's bias.

Mohan ji !!!

Entire YTC is based on price chart using PDH,PDL,PDC, etc...

OBV PDC is working for intraday ...

Yes !! OBV got its own limitation with respective to Daily charts !!!

 

[XRAY27]

Vijay !!! Have you made any 2PDC afl for OBV..if yes !! please share or else prepare one my dear kind man !!! ...

i will do back test on that !!!

 

[vijkris]

2 PDC means price or OBV or both? One chart will clear all doubts.

:lol: price is not discussed as of now. Only obv pane. I don't have any equipment now to display charts.

 

[vijkris]

Vijay !!! Have you made any 2PDC afl for OBV..if yes !! please share or else prepare one my dear kind man !!! ...

i will do back test on that !!!

Of course it was a tough task but did the afl. Now it is in pc, I can't switch it on.:lol:
Yday shared Sbi chart. There same Afl was used in OBV pane.