Using OHLCV values in Live Trading and Backtesting

The Open, High, Low, Close, and Volume (OHLCV) data format is a crucial element in financial analysis and trading strategies. In this tutorial, we'll delve into the significance of each element in OHLCV and explore how to effectively use this data for both live trading and backtesting.

Open Price (O):

The opening price represents the first traded price during a specific time period, often the beginning of a trading session. It is denoted by 'O' in OHLCV and is a critical parameter for understanding market sentiment at the start of a period.

High Price (H):

The high price is the maximum price reached during the specified time period. It provides insights into the highest level of buying interest or selling pressure and is denoted by 'H' in OHLCV.

Low Price (L):

The low price is the minimum price observed during the given time frame. It indicates the lowest level of buying interest or selling pressure and is represented by 'L' in OHLCV.

Close Price (C):

The closing price is the last traded price in the designated time period. It's a key element for evaluating the market sentiment at the end of the period and is marked by 'C' in OHLCV.

Volume (V):

Volume refers to the total number of shares or contracts traded during the specified time interval. It is a crucial indicator of market activity and liquidity, denoted by 'V' in OHLCV.

In Vestinda, all o these indicators can be used in your strategies as different elements in your trading rules.

Using OHLCV in a trading Strategy

You can find the basic indicators OHLCV in the list of indicators in the Strategy Builder.

Below you can see an example on how to use Close Price in your strategy and enter a new trade when it goes above the Exponential Moving Average.

Backtesting

In Backtesting, the value of any OHLCV element is the one from the closed bar that you set for the indicator (eg: 1 hour, 4 hours, 1 day, etc.)

Live Trading

In Live Trading, the values of each of the OHLCV elements is the live values. As the live trading continuously monitors the market, the values are used as received live from exchanges. IF you want to use only the closed bars in your strategies, you can use the Previous Value indicator.