#*#

Sanjay

OBV is based on the assumption that volume precedes price, but observe charts, in many instances, price precedes volume, may be price attracts volume

__________________
Just because it's not popular doesn't mean it isn't Great

Originally Posted by mSanjay

So volume is always for confirmation ... Does volume plays important role for EOD or high TF (above 60 min.) analysis only

Really I don't know. Above observation was made 2/3 years back while I try to evaluate breakouts with volume. Now not using volume in day trading.

__________________
Just because it's not popular doesn't mean it isn't Great

And Sanjay,

One more observation. On daily charts if volume dries up for more than one week, (5-15 days) and sharply rises with a strong bar/wide range bar, that move will continue. When volume dries up, the ATR should also shrink.

__________________
Just because it's not popular doesn't mean it isn't Great

this is very interesting subject, whether volume attracts price or price attracts volume ? any more comments by fellow members ?

__________________
You want to be yourself, idiosyncratic; the collective (school, rules, jobs) wants you generic to the point of castration - Nassim Nicholas Taleb

I usually put a 20,2 Bollinger Band on top of the OBV to track any spikes in the OBV on EoD charts.. this acts as a leading indicator for any impeding move

Originally Posted by stockoperator

I usually put a 20,2 Bollinger Band on top of the OBV to track any spikes in the OBV on EoD charts.. this acts as a leading indicator for any impeding move

welcome to inditraders
btw, looking at ur setup, things should happen like this, prices started consolidating in a range and while they consolidating there first comes the volume outburst along with higher close compare to previous close but still within BB, it may indicate the weakness as price not started going up despite higher volume and when new fresh sellers join the party, prices may actually go down further ( sometimes below BB ) with shrinking OBV ( nullifying higher calculation it recorded in previous higher closes).
I may be wrong, i just assumed it, as prices tend to fall or rise in stairs not up hill or down hill

__________________
You want to be yourself, idiosyncratic; the collective (school, rules, jobs) wants you generic to the point of castration - Nassim Nicholas Taleb

Ok found one such setup what i was talking about
The picture statement of above

__________________
You want to be yourself, idiosyncratic; the collective (school, rules, jobs) wants you generic to the point of castration - Nassim Nicholas Taleb

Originally Posted by alex

this is very interesting subject, whether volume attracts price or price attracts volume ? any more comments by fellow members ?

Just my two cent...

IMHO neither attracts the other.... Just two sides of a coin... For the coin to be valid both sides are required.. Price without volume is as useless as volume without price....

Originally Posted by karthikmarar

Just my two cent... IMHO neither attracts the other.... Just two sides of a coin... For the coin to be valid both sides are required.. Price without volume is as useless as volume without price....

ya while writing that question in that post, i almost overheard some one saying ' pehle anda ya pehle murgi'

__________________
You want to be yourself, idiosyncratic; the collective (school, rules, jobs) wants you generic to the point of castration - Nassim Nicholas Taleb