Skip to content

Volume-Confirmed Trend Entry (OBV + CMF)

What it does: Buys a move above the 50-candle average when volume shows buyers stepping in. This buys when the price crosses above the 4-hour 50-candle average while On-Balance Volume (a running total of volume on up versus down candles) is rising and Chaikin Money Flow (CMF, buying versus selling pressure) is positive.

Style: Volume · Difficulty: Beginner · Risk: medium · Ready: 3 of 4 variants

When people use it: It tends to work early in new trends.

Where it struggles: It struggles when volume is fake (wash trading) or when one exchange's volume doesn't reflect the whole market.

Markets it was written for: BTC, ETH, majors (exchange volume only). Timeframes: 4h.

Open it in the Strategy Library (on the Strategies page), pick a variant, adjust the settings and press Add to my strategies. It becomes your own strategy: edit, backtest or trade it like any other.

Long

Buys a move above the 50-candle average when volume shows buyers stepping in.

Labels: Trend Following, Long, Spot, Beginner, Medium

  • Direction: Buy (long) · Market: spot
  • Trigger: On candle close · Main timeframe: Auto (4h)

Entry

  • IF Price crosses above EMA(50) (4h) and OBV rising over 5 bars (4h) and CMF(20) > 0 (4h)

Exit: Indicator-Based Exit

  • IF Price crosses below EMA(50) (4h)
  • Loss controls: Stop-loss % 6%

Settings

Setting Default Editable What changing it does
OBV rising lookback 5 Yes OBV must be higher than this many candles ago. Shorter reacts to brief volume bursts (more trades); longer needs a steadier volume trend (fewer trades).
CMF length 20 Yes How many candles CMF measures. Shorter reacts faster but is noisier; longer is steadier.

How it works (as shown in the app)

  • This buys when the price crosses above the 4-hour 50-candle average while On-Balance Volume (a running total of volume on up versus down candles) is rising and Chaikin Money Flow (CMF, buying versus selling pressure) is positive.
  • It sells when the price closes back below the average, or at the stop-loss.
  • It tends to work early in new trends.
  • It struggles when volume is fake (wash trading) or when one exchange's volume doesn't reflect the whole market.
  • Uses your exchange's volume only.

Short (perp)

Shorts a drop below the 50-candle average when volume shows sellers stepping in.

Labels: Trend Following, Short, Futures, Medium, Backtest Only

  • Direction: Sell (short) · Market: swap
  • Trigger: On candle close · Main timeframe: Auto (4h)

Entry

  • IF Price crosses below EMA(50) (4h) and OBV falling over 5 bars (4h) and CMF(20) < 0 (4h)

Exit: Indicator-Based Exit

  • IF Price crosses above EMA(50) (4h)
  • Loss controls: Stop-loss % 6%

Settings

Setting Default Editable What changing it does
OBV rising lookback 5 Yes OBV must be higher than this many candles ago. Shorter reacts to brief volume bursts (more trades); longer needs a steadier volume trend (fewer trades).
CMF length 20 Yes How many candles CMF measures. Shorter reacts faster but is noisier; longer is steadier.

How it works (as shown in the app)

  • This shorts when the price crosses below the 4-hour 50-candle average while On-Balance Volume (a running total of volume on up versus down candles) is falling and Chaikin Money Flow (CMF, buying versus selling pressure) is negative.
  • It buys back when the price closes back above the average, or at the stop-loss.
  • It tends to work early in new downtrends.
  • It struggles when volume is fake (wash trading) or when one exchange's volume doesn't reflect the whole market.
  • Uses your exchange's volume only.
  • Shorting means you profit if the price falls and lose if it rises.
  • Suggested leverage is at most 3x. On isolated margin, at 3x the exchange closes the position (liquidation) if the price moves about 33% against you, and you lose the margin you put into it. Keep your stop well inside that.
  • For now this version runs in backtests only; paper and live futures trading are coming later.

MFI dip variant

Buys when money flow recovers from oversold while the daily trend is up.

Labels: Pullback, Long, Spot, Beginner, Medium

  • Direction: Buy (long) · Market: spot
  • Trigger: On candle close · Main timeframe: Auto (4h)

Entry

  • IF MFI(14) crosses above 20 (4h) and Price > EMA(50) (1d)

Exit: Indicator-Based Exit

  • IF MFI(14) crosses below 80 (4h)
  • Loss controls: Stop-loss % 6%

How it works (as shown in the app)

  • This buys when the price crosses above the 4-hour 50-candle average while On-Balance Volume (a running total of volume on up versus down candles) is rising and Chaikin Money Flow (CMF, buying versus selling pressure) is positive.
  • It sells when the price closes back below the average, or at the stop-loss.
  • It tends to work early in new trends.
  • It struggles when volume is fake (wash trading) or when one exchange's volume doesn't reflect the whole market.
  • Uses your exchange's volume only.
  • This version buys when MFI (a volume-weighted RSI) climbs back above 20 while the price is above the daily 50-day average, and sells when MFI falls back below 80.

OBV above its SMA

Buys when On-Balance Volume is above its own average and price is above the 50-candle average.

Labels: Trend Following, Long, Spot, Beginner, Medium

Coming later

This needs an indicator calculated on another indicator (like an average of OBV), a feature that's coming. You can read how it will work, but you can't add it to your strategies yet.

Planned rules (draft, may change before it ships):

  • Direction: Buy (long) · Market: spot
  • Trigger: On candle close · Main timeframe: Auto (4h)

Entry

  • IF OBV > SMA(20) (4h) and Price > EMA(50) (4h)

Exit: Indicator-Based Exit

  • IF Price crosses below EMA(50) (4h)
  • Loss controls: Stop-loss % 6%

How it works (as shown in the app)

  • This buys when the price crosses above the 4-hour 50-candle average while On-Balance Volume (a running total of volume on up versus down candles) is rising and Chaikin Money Flow (CMF, buying versus selling pressure) is positive.
  • It sells when the price closes back below the average, or at the stop-loss.
  • It tends to work early in new trends.
  • It struggles when volume is fake (wash trading) or when one exchange's volume doesn't reflect the whole market.
  • Uses your exchange's volume only.
  • This version buys when OBV is above its own 20-candle average and the price is above the 50-candle average.
  • Coming later: this version needs averages of other indicators (for example an average of OBV), which Apathia doesn't have yet, so it can't be imported or run today.

Warnings

  • "Backtest only for now: paper and live trading of shorts are coming later.": shown on short variants. They need perpetual or futures pairs.
  • Some variants suggest leverage. On isolated margin a liquidation loses the margin in that position; keep any stop well inside the liquidation distance (the Trade Builder warns you when it isn't).
  • Once added, the strategy's conditions get the usual condition checks. Messages show under each condition on the entry / exit conditions screen; setting errors start with the indicator's short name (for example "MACD: Fast must be between 1 and 1000") and block saving, while the other warnings never block saving and repeat in the strategy's Entry or Exit section. See the indicator pages below for each one.
  • "You already have this strategy with these settings (…). Change a setting to add another copy.": shown on the variant's page in the Strategy Library when you already added this variant with the same settings.

Good to know

  • After you add it, the strategy keeps the library's trigger and an Auto main timeframe; you can change both in the builder. Nothing links it back to the library, except that the builder still shows the library's explanations in the info bubbles.
  • Changing a setting before adding it also changes the saved name, so you can tell copies apart.
  • Past results don't predict future ones. Try it in a backtest and on paper before using real money.
  • Indicators used: CMF, EMA, MFI, OBV, SMA.