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John,
As you may know, OBV shows "directional volume" and is meant to
indicate divergences from price. The concept is that volume will lead
price.
Try pasting the below into a custom indicator for plotting OBV vs
Close range divergences over the past year. Not meant to be a
complete system. You can also set up a filter to find OBV%-C% values,
and sort on that in the Explore.
Bill
Plot(
100 * ((OBV() - LLV(OBV(), 250)) / (HHV(OBV(), 250) - LLV(OBV(),
250))),
"OBV%1yr", 12, 4);
Plot(
100 * ((C - LLV(C, 250)) / (HHV(C, 250) - LLV(C, 250))),
"C%1yr", 7, 4);
Title =
Name()
+ " OBV%-C%1yr = "
+ WriteVal(
100 * (((OBV() - LLV(OBV(), 250)) / (HHV(OBV(), 250) - LLV(OBV(),
250))) - ((C - LLV(C, 250)) / (HHV(C, 250) - LLV(C, 250))))
)
;
--- In amibroker@xxxx, John Nelson <trader@xxxx> wrote:
> All,
>
> I have attached my first (lame) attempt at applying OBV in a
system.
> It's a simple MA + crossover strategy. I'm not really pleased
with it
> because it tends to just following the direction on the way up and
down
> and generates FAR too many trades for my tastes. I would like to
see
> clustering of trades at clear volume inflections and way fewer
signals.
>
> How does one use OBV in general?
>
> -- John
>
> --
> _____________________________________________________
>
> John T. Nelson
> Trader | Dreams Of Empire
> mail: | trader@xxxx
> web: | http://www.dreamsofempire.com/
> _____________________________________________________
> "Prediction is sexy... but strategy makes money"
>
>
>
> // Test the OBV indicator as a system...
>
> MaxGraph = 4;
>
> Graph0Style = 1;
> Graph1Style = 1;
> Graph2Style = 1;
> Graph3Style = 1;
>
> Graph0Color = 1;
> Graph1Color = 1;
> Graph2Color = 1;
> Graph3Color = 5;
>
> // Construct the signal line...
>
> PER1 = 5;
> PER1 = Optimize("OBV1 Periods",PER1,1,40,1);
> PER2 = 2;
> PER2 = Optimize("OBV2 Periods",PER2,1,40,1);
>
> MA1 = MA(OBV(), PER1);
> MA2 = MA(OBV(), PER2);
>
> OBVUp = Cross( MA1, OBV());
> OBVDwn = Cross( OBV(), MA2);
>
> // Signals...
>
> Buy = OBVUp;
> Sell = OBVDwn;
>
> Short = Sell;
> Cover = Buy;
>
> Graph0 = OBV();
> Graph1 = MA1;
> Graph2 = MA2;
>
> Title =Name() + " -OBV Test: " +" Red Line " + WriteVal ( Graph0 );
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