On Balance Volume (OBV) Trading Strategy

On Balance Volume Trading Strategy

On-balance volume is a technical analysis indicator intended to relate price and volume in the market. OBV is based on a cumulative total volume. I was using this indicator for my personal trading over long time and its a very effective indicator. then i came across through a blog where i found this strategy and start using this over 3 weeks now. its simple but very efficient strategy. no messy chart and too many indicators. also has good winning rate

Original Strategy found on here

https://www.algotdea.com/post/obv-trading-strategy

you can download the chart template below

How to trade using this strategy

Long Entry Rules

* 246 - Period WMA of price is sloping up

* 246- period WMA of OBV is sloping up

* slope of price WMA turn negative but slope of OBV WMA stays positive

* Go Long When Price turn Positive again

Short Entry Rules

* 246 - Period WMA of price is sloping Down

* 246- period WMA of OBV is sloping Down

* slope of price WMA turn Positive but slope of OBV WMA stays Negative

* Go Short When Price turn Negative again

Exit Method

you can exit the trade when OBV crosses the overlay WMA

or

When Price crosses the WMA

Stop Loss

Stop Loss can be set Few pip below the entry point. I personally use ATR to determine my Stop loss

GBP AUD Long Entry Example which happen on Last week

AUD CAD Short Entry Example

In This GBPNZD Chart First Long entry is correct one.
2nd Example i mark as cross sign we cannot take that long trade as OBV and Overlay WMA both are not aligned correct

Different brokers, different tick volumes, different obv/WMA readings.

Gold Trade Example

Another Short Example on Gold, Its important That you check the WMA and OBV Overlay Slope

Very nice!
Even if there is different brokers different tick volumes this idea has legs big time. I traded with a similar system years ago.
What you need to do is try it with different brokers and tweak the parameters just a little and make it fit, whoever cares enough will find the edge
There are also different OBV indicators that are smoother, if someone is interested I can post them here if the thread starter
permits, I will dig them out.

Sure you can post anything related to OBV here. that's what we are here for discuss and make better system

EUR JPY Short Trade which happen today

Short Entry on AUDUSD today work well

EURUSD Short Entry which happen today

Hello @bigband !!!
Loving this strategy. I think I can also make use of Market Structure. Do you agree ?

Also, what's the name of the dashboard indicator you make use of to display all the currency pairs ?!