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- เผยแพร่เมื่อ 16 มิ.ย. 2024
- Interpreting signals from the On-Balance Volume indicator is different from many other indicators. This video provides examples of divergences between OBV and the price action to get maximum value from the signals it provides.
When using this type of volume-based indicator that uses a 'cumulative' calculation, it is divergences (as opposed to similarities) that hold the key to successful use.
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This is Episode 73 in the Darwinex 'Algo Trading for a Living' Playlist, and Episode 13 of the new 'Volume Data' mini-series.
Video Contents:
00:00 Introduction
01:14 On-Balance Volume Recap
01:40 OBV Indicator Rationale
02:20 EURUSD Example using On-Balance Volume
03:18 OBV Divergence with price action
03:51 FTSE100 Example using On-Balance Volume
06:04 Coming soon - Accumulation/Distribution and Money Flow Index
06:20 Summary and Conclusions
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: www.darwinex.com/legal/risk-d...
This gentleman is so clear and understandable with his explanation that he could instruct someone on how to split an atom. Thank you, sir.
Flawless explanation, easy to understand , no noise and nonsense as many other chanels have , Appreciate your work. Thank you.
I'm also so glad to have found this channel. You have such a nice way of explaining things.
Darwinex- you are one of the best trading teachers/ instructors i have listened to, thank you for your expertese and am subscribed and will be watching more of your videos
This video DOES worth more than it looks and only few may know that .
Great thank you Martyn for this brilliant explanation.
Granville's book is necessary reading to fully grasp this, even though his music examples early in the book show he has little to no formal training in music, don't let that dissuade you. It's also worth mentioning that he doesn't think adding an SMA line to the OBV indicator is of any value, simply because, in his words, "it takes too long to set up." Which, in 1962, definitely would have taken a long time, but we have computers now, and the ability to progress much farther beyond his 60 year old theory. If you've got an SMA/AOBV line set to a period of 30-40, when it goes horizontal and bottoms out after a downtrend, and the OBV line crosses up and over the AOBV line, this uptrend on the AOBV line tends to precede price movements by days, if not weeks, and it is INVALUABLE for determining when to buy. The opposite is the case for when to sell. Best indicator hands down.
I am so glad I found this. So confused with OBV by reading it in google since some of the English words are so hard to understand since I'm Asian. But you explained it briefly and it's easy to understand. Thanks for this Dar!
Great explanation. easy to understand and to the point. thank you.
Very informative video. Thank you!
Darwinx, a leading edge OBV presentation. Ty for sharing your trading expertise with traders across the world on TH-cam
Perhaps though for stocks and volume, first read, imo, trader/author Tim Ord's book and rules for volume around pivots. Volume is energy force applied to move stocks. After I grasped this bedrock rule of stock movement, OBV and Volume Profile all made more sense when seen as energy supply demand forces. Tim Ord's breakthrough on volume pivot rule analysis can also dovetail in as well with your OBV divergences. Pacifico beer cheers!!!
The truth can set us all free on the market level as well as higher ethereal planes.
Outstanding!
Great.
So, this is directly leading to the next questions:
1- Method used to compare OBV and Price:
1a- comparing slopes (Linear Regression Slope) between two major Higher Lows
1b- Would you normalise or rescale these slopes to make them comparable
1c- else ?
2-The trigger for opening the trade:
2a- break of the last Higher Low to enter short
2b- indicator based entry RSI, MA cross, Channel break
Would be happy to have your hints
:-)
Hi Tony - Great to see someone who works through things the same way I do :) So ideas for you to try:
1. Method - You don't need to use linear regression. If you know what the major high / lows are then just use those 2 points and calculate the gradient. Much quicker from a performant algo point of view. Yes, some form of normalisation will be required, so that you know how severe a slope is compared with the norm.
2. Trigger - Well there are MANY options here. This is one of those where I'd say try different approaches. But the two worth focussing most effort on imo are using a threshold divergence level. If it's exceeded then go. Another is to use an alternative indicator for the trigger as you suggest. My view is that leading oscillators are usually best in these circumstances.
Keep watching! Many Thanks
Great teacher❤️
I just Subscribed. Thank you
Thank you so much ! 😄👍
well explained thank you so much sir .........
Sir it's great explanation, can we identify temporary pull back in OBV and shall we call as a trap?
Kindly clarify
thank you great explanation
Glad it was helpful!
Thank you so much bro for this awesome video.
No problem 👍
3:31 not "Weakening significantly" but it means that was weaker in past and it does not necessarily means that weakening will be present in future. We can only assume that and time will tell if that assumption was correct.
Which is the stronger signal? The hidden or the regular divergence? Because both are often present together.
Hello I'm fairly new and been seeing that meme stocks such as $AMC and $GME have been fairly high in OBV and not following the chart at all when the stock falls in price. what does that mean?
does this work for BTC ?
where can I get the BTC aggregate volume from all the exchanges?
Thank you
Like McDonalds would say: "Im loving it"
:)
any good as day stock trader?
Very clear explanation tq sir
But the obv couldn’t go any higher cos it was already at such a high level… doesn’t say anything about trend strength
Woh
WHAT HAPPENS WHEN PRICE ACTION GOES DOWN BUT OBV GOES UP?
It could mean reversal to uptrend or range is close in my opinion.
@@sajkaz5692 Can that range, be interpreted as reaccumulation?
OMG will people use stocks for once as examples? I'm so tired of seeing forex examples that everyone seems to be using. Every effing TH-cam video keeps using forex. What about regular stocks like mid float to large...AMD, NVDA, AAPL, MSFT? Sorry I'm getting fruistrated with forex examples. I feel like someone needs to say it. *Sigh* ...sorry just having a rough day.
Steve, for stocks and volume, first read, imo, trader/authorbTim Ord's book and rules for volume around pivots. Volume is energy applied to move stocks. After I grasped this bedrock rule of stock movement, OBV, Volume Profile all made more sense when seen as energy supply demand forces. Hope your day improves with the light that emanates from Tim Ord's breakthrough on volume analysis that can dovetail in as well with OBV divergences. Pacifico beer cheers!!!