Community Forex Questions
What is the volume on-balance indicator?
In the 1960s, Joe Granville invented the On Balance Volume (OBV) indicator. Many professional financial market traders still use it for research and trading today, as it was a groundbreaking indicator at the time.
The indicator takes into account volume as well as whether the volume moves prices up or down. This is how OBV is defined. In technical analysis, it is used to calculate the amount of buying and selling pressure.
Volume is included in the cumulative OBV total when the price rises, so it is a cumulative indicator. In the event that the price falls, the volume for that day is subtracted from the overall OBV. The On Balance Volume Indicator is one of the most prominent momentum indicators in the market, and it is most effective at identifying fresh trading opportunities.
The indicator takes into account volume as well as whether the volume moves prices up or down. This is how OBV is defined. In technical analysis, it is used to calculate the amount of buying and selling pressure.
Volume is included in the cumulative OBV total when the price rises, so it is a cumulative indicator. In the event that the price falls, the volume for that day is subtracted from the overall OBV. The On Balance Volume Indicator is one of the most prominent momentum indicators in the market, and it is most effective at identifying fresh trading opportunities.
The volume on-balance indicator, or VOB, is a technical analysis function that shows the relationship between volume and price over a specific time interval. The concept behind the VOB is to identify when traders are buying or selling a security by showing a divergence in volume and price.
Feb 04, 2022 09:53