a rising or falling On Balance Volume: Rising OBV line indicates an upward breakout. An Upward sloping OBV line signifies a healthy move in the security while a zigzag or sideways trend represents indecision or reversal of a trend. It is a momentum indicator that measures the positive and negative volume flow and relates volume to price change. If OBV is falling and price is increasing, then we can assume that sooner or later, the price will follow OBV as it does not have the strength to sustain a bull run for long. By: YourForexDirectory, on balance volume was coined by Joe Granville in his book, New Key to Stock Market Profits, in the year 1963. The total volume is maintained by adding each day volumes to it based on whether its the up-volume or down-volume. These gold brokers vary in their trading conditions, such as initial deposit, maximum leverage, spreads, etc. Where: OBV(C) is the indicator value of the current period. forex Broker, review, year, status, trading instruments. It gives direction to the volume signifying whether it is the buying or selling pressure which is dominating the market.
It is mainly used to look for the various divergences and to look for the trend confirmations. To look for bullish or bearish divergences. An OBV graph begins with 0 and then starts. If OBV is making lower lows and lower highs, then it can be regarded as a bear run. You need oil charts for correlation analysis of your foreign exchange trades. The OBV line should be kept in mind while making use of this indicator and not the real volume numbers. OBV can be used to look for the trend in the indicator. An uptrend can be confirmed by an upward sloping OBV while downtrend gets confirmed if the slope is downward sloping. It basically helps in detecting if a particular currency is being accumulated by buyers or sold by sellers.
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