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