Re: OBV (On Balance Volume)

21
Mark the Lowest Volume bar of the day in the time frame that you trade.
This point really gives good trending moves either way, sometimes both ways.
This is a very powerful point for trading.
The reason being that the Bulls and the Bears could not reach an agreement in price
and hence the abnormally low volumes. After this whichever side takes control it remains
with him for a good time (A good trend follows).

The LV(low volume) bar takes importance because very often a clear trend is established after this.
So we can trade this trending move. This concept can be used across all timeframes.

Here is the Amibroker code to mark the lowest value bar in the daily lookback period.
It paints the high and low pivots just preceeding the bar (the dotted green and the red lines) thus making it
more easy to visually make out the BO or BD from those levels.

Concept Courtesy : Varun Kochhar
Code courtesy : Rahul(username : extremist)
from an Indian trading forum

Code: Select all

_SECTION_BEGIN("HiLo Vol N");

n=Day() != Ref(Day(), -1);

a=LowestSince(n,V);
hh=ValueWhen(V==a,H);
ll=ValueWhen(V==a,L);

Plot(hh,"\nLVhb",colorGreen,styleDashed);
Plot(ll,"\nLVlb",colorred,styleDashed);

_SECTION_END();
I request @mladen, @mrtools, @mntiwana to look at this request and
please check whether this can be coded for MT4.

Thanks,
Attachments
Your dedication to the craft of trading is constantly tested by the demons of fear and greed


Re: OBV (On Balance Volume)

22
ashetty033 wrote: Fri May 19, 2017 9:29 pm Mark the Lowest Volume bar of the day in the time frame that you trade.
This point really gives good trending moves either way, sometimes both ways.
This is a very powerful point for trading.
The reason being that the Bulls and the Bears could not reach an agreement in price
and hence the abnormally low volumes. After this whichever side takes control it remains
with him for a good time (A good trend follows).

The LV(low volume) bar takes importance because very often a clear trend is established after this.
So we can trade this trending move. This concept can be used across all timeframes.

Here is the Amibroker code to mark the lowest value bar in the daily lookback period.
It paints the high and low pivots just preceeding the bar (the dotted green and the red lines) thus making it
more easy to visually make out the BO or BD from those levels.

Concept Courtesy : Varun Kochhar
Code courtesy : Rahul(username : extremist)
from an Indian trading forum

Code: Select all

_SECTION_BEGIN("HiLo Vol N");

n=Day() != Ref(Day(), -1);

a=LowestSince(n,V);
hh=ValueWhen(V==a,H);
ll=ValueWhen(V==a,L);

Plot(hh,"\nLVhb",colorGreen,styleDashed);
Plot(ll,"\nLVlb",colorred,styleDashed);

_SECTION_END();
I request @mladen, @mrtools, @mntiwana to look at this request and
please check whether this can be coded for MT4.

Thanks,
This is an interesting idea, instead of taking a look at the highest volume bar (like all other indis do), you consider the low volume to be the catalyst of future move. Same way exhausting candles usually have highest volume and predict a reversal. It's worth investigating a bit more, although such an indi would need to have period restrictions to avoid periods of naturally low volume (between NY - Sydney for example).

Re: OBV (On Balance Volume)

25
mladen wrote: Thu May 25, 2017 4:56 pm ashetty033

Please use some of the existing volume indicators that already have that
Sir,

Tried Better Volume indicator.. It plots low volume bars.. But doesn't show the lowest among them..

Market opens at 9.00 am.. Horizontal line is drawn on the first bar and then when the second bar is formed it checks with previous bar
whether volume is lower than that.. if it is more, line continues on first bar.. if it is less, line shifts to the second bar.. same procedure follows for
further bars..
Lets say lowest volume of the day was on first bar and then new lowest volume appeared on tenth bar, then the horizontal line from the first bar shifts to
tenth bar.. same way lines get shifted to the bar which has new lowest volume compared to previous ones till the end of the day/ last bar of the day...

Example in the figure below.. Market opened today at 9.15 am (the first red vertical line in the figure).. Then the horizontal line shifted to second bar has the volume was less than previous one.. then onto the fifth bar as the volume was lesser than the one in second bar.. then moved on to the sixth bar.. then to
eighth bar and to tenth bar as the volume was getting lower than the previous low... Then moved to 21st bar as the volume was lower than the one in tenth bar..
Then moved on to 35th bar as it got a new low volume.. and stayed there waiting for the new low volume..
Horizontal lines are drawn on high and low of the bar with new low volume..
*red vertical lines are drawn manually to show the bars forming new low volume..

Thanks,
Attachments
Your dedication to the craft of trading is constantly tested by the demons of fear and greed


Re: OBV (On Balance Volume)

26
mades wrote: Fri May 19, 2017 9:48 pm This is an interesting idea, instead of taking a look at the highest volume bar (like all other indis do), you consider the low volume to be the catalyst of future move. Same way exhausting candles usually have highest volume and predict a reversal. It's worth investigating a bit more, although such an indi would need to have period restrictions to avoid periods of naturally low volume (between NY - Sydney for example).
Yes.. Lookback period option would be useful...
Your dedication to the craft of trading is constantly tested by the demons of fear and greed

Re: OBV (On Balance Volume)

27
mrtools wrote: Sun May 07, 2017 2:04 am Ashetty033, this isn't the same as what your looking for, but it's OBV based so posting it here. This uses a cross of a OBV and it's moving average to color the histogram.
Hi Mr tools, Thanks for hard work. This website is astonishingly fire. About this Indicator. I analysed it on Renko on 5 block size with time frame of daily on indicator options. The results are beautiful. So I am just anxious if this indicator repaints in any means, especially when changing settings for higher frame. It is little hard to backtest it on renko for me as I am not so advanced on it and plus I set the indicator on 1 day TF. Thanks
I am A Renko User

Re: OBV (On Balance Volume)

28
mrrabha wrote: Sun Jul 02, 2017 11:59 pm Hi Mr tools, Thanks for hard work. This website is astonishingly fire. About this Indicator. I analysed it on Renko on 5 block size with time frame of daily on indicator options. The results are beautiful. So I am just anxious if this indicator repaints in any means, especially when changing settings for higher frame. It is little hard to backtest it on renko for me as I am not so advanced on it and plus I set the indicator on 1 day TF. Thanks
mrrabha

That indicator does not repaint


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