I find the OBV or other volume indicators work quite well for long-term position trading. But cannot make them work for intra-day trading. Any idea?
The reason for this is likely because high volume accompanies major moves. So you may want to look at OBV "peaks" as a place to sell and "troughs" as a place to buy. In other words, fade the volume ramp-up.
By the time volume shows up on the tape, best entry signals have already confirmed prior to. Volume is a lagging indicator for intraday trading. Confirms the middle and latter entry signals in directional moves... after the early signals have long since passed.
Ever try using volume based bars? I switched from time bars to volume and will never go back to the time bars. Just and idea.
============== H trader; Yes, but not obv & probably wouldnt call a secondary indicator like vol''working quite well'' intraday. .Plenty of opportunities which dont have our favorite stairstepping volume. ================== ============================ ================================= Intraday=harder; no big gaps usually , less time for trend to bail you out, more comissions..... Volume clearly secondary & since your question is limited to day trading, price/price indicators maybe more fruitful
Sorry to disagree Jack...from my observations of eRL, many, many (but not all !) fast moves up or down get short-circuited when there is a volume spike. Granted, I'd have to run an analysis of this via computer, but even observing the intraday charts, I've seen it many times. And this guy has had a lot of screen time as well: Quote from Alan Farley: " big volume kills trends (blow-offs take buyers and sellers out of the market)"
On volume based bars,does each stock have its own "volume filter",or is it based on some % of an average??