On Balance VolumeTechnical Analysis
On balance volume displays volume as a line which increases and decreases based on price interactions with volume. The line increases on days where price closes higher than its opening by adding volume to the previous value. The line decreases on days where price closed lower than its opening by subtracting volume from its previous value. In this sense, the line attempts to more accurately attribute volume to price increases or decreases. Additionally, changes in the On Balance Volume line often occur before a change in the price level.
A problem occurs in the methodology of assigning all volume for a day to positive or negative volume. It isn’t completely realistic to represent all of the day’s volume was a positive or a negative number, even if it occurred on days where price trends increased or decreased.
On Balance Volume should breakout upwards before price trends upwards, and should breakout downwards before price falls. Rising trends in the On Balance Line should have rising peaks and troughs. Falling trends in the On Balance Line should have falling peaks and troughs.
Did we help you? Vote with a Crypto-Donation!
Donate Bitcoin Cash
International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
- Occasional: Foregin Exchange Technicals Markups
American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
- Economically Correlated U.S Dollar Projections
- Large Trading Fund Index Sentiment Readings
- Market Wide Earnings Versus Valuations
- Fundamental Ranking of U.S Business Sectors
- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
Investment and Finance, Serviced by Amazon
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.