We all know OBV plays a very important role in figuring out price volume divergences and it can help anyone analyse the directivity force of the market and has a very good tradeoff if applied correctly
In this Experiment i have derived liquidity levels for OBV using volume jumps inside the market
A volume jump is classified as:
Good Volume Jump = 1.618 times the Average Volume (WMA or 2pole ButterWorth's Filter of Volume) Great Volume Jump = 2 times the Average Volume (WMA or 2pole ButterWorth's Filter of Volume) Extreme Volume Jump = 3 times the Average Volume (WMA or 2pole ButterWorth's Filter of Volume)
So the horizontal levels which you see on the indicator (colored in red/ blue / gray lines) are the derived Liquidity Levels for OBV in the Market, these are the levels where OBV is most likely to perform a movement or come back
Also I have applied KAMA indicator on top of OBV for better Directive guidance, as of my experiments KAMA seems to be most stable and consistence of all the other moving averages,
KAMA's Length inculde:
KAMA - 8 KAMA - 34 KAMA - 200
Hope this Script help you guys! Thanks to Tradingview for providing such an awesome platform
When I add this it works but when I change Timeframe it disapper and I have to manually again reload this, can you suggest what should I do?
Ankit_1618
⋅
@mtpfan, Check ur internet, it should be fast, in order to load the data from trading view,
Cause script is pulling last 1000 bars
swingHodler
⋅
Amazing thanks
panchalkiran9
⋅
hiii sir this one is nice indicator, but i have a question , does that Red, Blue and Grey line indicate High Volume levels from Lower, Midium to High Volume , Kindly Suggest.
Ankit_1618
⋅
@panchalkiran9, red corresponds to high above average volume , blue = medium , gray = lite