Thread by @tradingroomapp

Free Alpha

Do yourself a favor and add OBV indicator on your charts. Now add 20 & 200 MA on top of OBV indicator

Add an indicator on top of an indicator. Now you can spot price vs OBV divergences easily

Read this thread for more…..

Now watch H1 for short term reversals and H4 & Daily for mid term reversals

Works best after huge pumps and dumps to find reversal clues

After a big dump, If OBV breaks above 20/200 MA & if 20 MA turns into support, expect local reversal

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If price is below 20/200 & OBV is above 20/200 & holding 20 as support that’s your incoming breakout clue!

What that means is, OBV broke the high but price is still struggling. Price May still dump all the way to retest the low & even two little lower to clean stops but

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But eventually it will renounce with a momentum & make a new high

In nutshell once OBV confirms bullish bias, prices generally hold lows & post local reversals. If this happens on daily that’s your lottery trade

But remember for this logic to work we need huge pump or dump

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Most reliable timeframes H1 for short term and daily for mid term. H4 is kinda 50:50

#Bitcoin has clearly H1 OBV divergence. This means recent low can be confirmed as the low for this move. If we dump to that area, we may buy BIG

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And if #btc tries to break, we will jump with a tight SL with no fixed targets. We will close when we feel the trend is over. We trade only CASH. No leverage

Spread the first tweet in this thread if you want more free alpha! Like it and share it!

Here is how it looks like on a Chart. I am using a Special MA Indicator that colours above or below as Red or Green Area.

This is #Bitcoin $BTC H1 chart

One caveat, don’t use it on low volume shitcoins. Use it only with majors on big exchanges that have large volume share among the major exchanges