Altered OBV On MACD

Here is another strategy along with an indicator that is already published for everyone to use wisely in the tradingview platform. The strategy is not very planned to highlight where to enter and when to exit as it is just a system. So, it is always good practice to follow the signal of simple moving averages and that is the reason you could find those color lines in this strategy as well.

As the indicator signals the entry point, it is wise to decide what the SMA (21, 50, 90, 200) signals us. When the price oscillated around the higher timeframe of moving averages, then it is wise to wait before entering.

The OBV is perfect indicator to understand the strength of the particular stock. As the strength increase, the trend of the stock goes high along with price. But, the OBV is considered only with close of previous close which is to make sure the double confirmation on the price to accumulate the volume .

Altered OBV:
So, here is the altered OBV, which basically consider the close of previous close and also buying interested of the day when close is higher than open.

I always admire the magic of MACD with pre-defined timeframe. Now, this MACD applied on top of altered OBV to signal us the moving of the ticker strength.

The long entry occurs when the MACD on Altered OBV signal bullish and the same time the MACD on close already bullish.

The short denotes when the MACD on Altered OBV signal bearish and at the same time the MACD on close already bearish.

I hope this would help on your swing trading strategy.

Happy Investing.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.


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