Welcome to Episode 418 of Trading Talk. In this week’s episode, we explore how volume can be integrated into automated trading systems using a volume-based Trend Probability Indicator built with On Balance Volume (OBV) and the Money Flow Index (MFI).
Volume can provide valuable confirmation when identifying momentum shifts, divergence conditions, and potential reversal opportunities. In this episode, we demonstrate how these concepts can be transformed into structured and testable automated trading logic using Trade View X.
Key Points
- Build a volume-based Trend Probability Indicator using OBV and MFI
- Identify positive and negative divergence conditions
- Create structured long and short reversal logic
- Build pyramid entry functionality
- Implement ATR-based stop loss calculations
- Create a net take profit function for grouped positions
Why Volume Matters
This episode demonstrates how volume behaviour can help confirm market strength and identify potential reversal opportunities using automated trading logic.
We also show how ATR-based stop losses and grouped take profit management can improve trade structure and risk management across multiple positions.
