Technical Indicators,  Weekly Lessons

OBV(On Balance Volume)

February 10, 2019

They say volume precedes price. OBV rises when volume on up days outpaces volume on down days. OBV falls when volume on down days is stronger. A rising OBV reflects positive volume pressure that can lead to higher prices.

Conversely, falling OBV reflects negative volume pressure that can foreshadow lower prices. Expect prices to move higher if OBV is rising while prices are either flat or moving down.

Expect prices to move lower if OBV is falling while prices are either flat or moving up.On Balance Volume (OBV) is a simple indicator that uses volume and price to measure buying pressure and selling pressure. Buying pressure is evident when positive volume exceeds negative volume and the OBV line rises.

Selling pressure is present when negative volume exceeds positive volume and the OBV line falls. 

So to simplify. Ang normal is pag uptrend or pag tumataas yung prices dapat yung OBV eh tumataas din or umaakyat din. Kapag bumabagsak yung prices dapat yung obv eh bumabagsak din. 


On Balance Volume

Anything na iba dun is divergence.

So kapag tumataas yung price pero ang OBV ay pababa sooner or later babagsak yung price. Kapag ang price ay bumabagsak pero ang obv ay pataas sooner or later ay aangat ang price.

You can use this para makaiwas sa bulltrap.

On Balance Volume
On Balance Volume

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