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u/B2BContinuum 1 day ago

ADD + TICK + OBV: a 3-gauge scalping check

I made this short animation to explain a simple filter for 1-minute and 5-minute scalps. The idea is that you only trade when three gauges agree, and each gauge has one job. The three gauges 1. $ADD on the 5-minute: picks the side $ADD is the number of NYSE stocks going up minus the number going down, as a running total for the day. Above +500: most stocks are rising, so only look for longs (calls). Below −500: only look for shorts (puts). In between: the market has no clear direction. Same-day options lose value in chop, so skip it. 2. OBV on the 5-minute: checks the fuel OBV (On-Balance Volume) is a running tally of volume. Add the bar’s volume when it closes up, subtract it when it closes down. It doesn’t show who was buying or selling aggressively, only whether volume has been on the up bars or the down bars. For a long, you want OBV sloping up with price. If price makes a new high but OBV makes a lower high, that’s a divergence. The move has less volume behind it, so don’t add new longs. 3. $TICK on the 1-minute: times the entry $TICK is the number of stocks ticking up minus the number ticking down, right now. It’s fast and noisy. In a long setup, wait for $TICK to dip to around 0 and turn back up. That’s the entry window. When it spikes toward +1,000, that’s usually a place to take profit, not to chase. Readings past ±1,000 are rare. The check, in order 5-min $ADD beyond ±500 → pick the side 5-min OBV slopes the same way, no divergence → volume agrees 1-min $TICK dips to 0 and turns → enter Get out if $TICK hits ±1,000, OBV starts diverging, price breaks the 1-min swing low, or $ADD slips back inside ±500 If any one gauge disagrees, there’s no trade. Caveats The ±500 and ±1,000 levels are common rules of thumb, not magic numbers. Test them against your own charts first. In a strong trend, a divergence can go nowhere for a long time. That’s why the exit rules matter more than the entry. The charts in the video are illustrations, not a real trading session. Nothing here is financial advice. Question: for anyone who scalps with breadth, do you use $ADD as a hard filter like this, or more as background context? I’m curious whether people find the 5-min/1-min split too slow or too fast.
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