TCON
BNGO
ONTX
$TCON daily chart. January 16 2020 traded half it's float.
March 2020 - Covid
3/16 to 8/27 Consolidation and huge block orders.
Notice how regardless of the price, OBV is climbing higher and higher steps up, 1 step back 2 steps forward. Simple addition then subtraction rules apply and add and subtract green/red days volume for weighting.
Then 8/17 TCON traded nearly twice it's float and laid dormant for close to a week. Despite many daily candles being red (faded) OBV jumped up from 12M to 30M overnight...
$TCON then ran from $1.50s to $12.30 over the next few months.
After look.
$BNGO same story.
After.
$ONTX insane gap fill off a phase 3 failure.
After.
Overall, if obv doesn't look like this I rarely enter trades long term unless its an intraday position or possible swing. I'll have more examples coming. Good luck and I hope this was useful.
BNGO
ONTX
$TCON daily chart. January 16 2020 traded half it's float.
3/16 to 8/27 Consolidation and huge block orders.
Notice how regardless of the price, OBV is climbing higher and higher steps up, 1 step back 2 steps forward. Simple addition then subtraction rules apply and add and subtract green/red days volume for weighting.
Then 8/17 TCON traded nearly twice it's float and laid dormant for close to a week. Despite many daily candles being red (faded) OBV jumped up from 12M to 30M overnight...
$TCON then ran from $1.50s to $12.30 over the next few months.
After look.
$BNGO same story.
After.
$ONTX insane gap fill off a phase 3 failure.
After.
Overall, if obv doesn't look like this I rarely enter trades long term unless its an intraday position or possible swing. I'll have more examples coming. Good luck and I hope this was useful.
Comment:
Use OBV to avoid being shaken out whether scalping, swing trading, or any other trade you put on. It helps to keep conviction in a world where having an actual passive stop loss will only make you puke into support and likely watch it go the other way after you've been stopped.
Comment:
If there are big fish accumulating, this will show you. Look for sharp drops in OBV and then retest of price to confirm or deny your entry. Good luck, its all I use along with just having a general understanding of normal market structure on a micro and macro scale. Always use multiple time frames and for the love of God stop looking at 1 minute charts unless you are *elite*.