Category: Money Tips Date: 2006-08-24
OBV line also known as OBV energy flows, is the volume value to be quantified, made of the trend line, with the share price trend line, from the price changes and volume changes in the relationship, suggesting market sentiment. OVB's theory is based on market price movements must have a volume with, the price movements do not correspond to the volume of movements, then the market price changes difficult to continue. 1. Method of calculating the total daily cumulative daily stock market turnover, the day is higher than the closing price the day before, the total volume is positive, the other hand, is negative, if the flat plate, then to zero. Namely: OBV = one day before the day of the OBV ± today's volume and then the aggregate daily turnover of the proceeds into a line of fixed-point connection with the stock curve and listed in a chart and watch the changes.
2. OBV line, using the principles of the basic theory is based on price and volume changes in the value of the correlation coefficient between the high and the turnover value of stock price movements of leading indicators, short-term fluctuations in stock prices rise and fall with the performance of the company is not entirely consistent, but by popular implications and therefore can be predicted from the changes in volume with the direction of price fluctuations.
(1) When the stock price rising OBV line is declining, said the energy shortage, the share price may fall again.
(2) When the OBV line fell to rise, said that strong buying, the stock may soon go up again.
(3) When the stock price rising OBV line synchronous rise slowly, it said that the stock market continue to be optimistic, there are still wing surface.
(4) When the OBV line shot up, regardless of whether the stock price soared, or they fall again, that energy will soon run out of the stock may stop rising reversal.
3. Judged
(1) OBV line is based on statistics drawn made the changes in volume, so OBV line belongs to a technical analysis and fundamental analysis of an economic nature has nothing to do.
(2) OBV line is the short-term fluctuations in the stock market an important means to judge, but the use of OBV line should be judged with the stock price trend analysis.
(3) OBV line can help determine the stock market after the break disk Bureau of development.
(4) OBV trend can be localized within the market shows that the main direction of movement of funds, indicating the excess current unusual volume is hovering in the low-cost or high prices to generate enable the technical analysis one step ahead of in-depth understanding of those within the market reasons.
(5) OBV line of the double-top (M head) identified the second peak in the more standard display, when the stock price since the first peak of double top-down once again picks up again, if the OBV line can be synchronized with the rising price trend, price volume with the bull market is likely to continue and appear to reach new heights, but the contrary, when the stock price rise again, OBV line failed to catch, fleet has declined, it may be the formation of a second peak in the completion of a double top pattern, and further lead to Shares fell back up reverse.
(6) OBV line of the scope of application are in favor of short-term and out, nothing to do with fundamental analysis. At the same time OBV can not effectively counter-productive to reflect current market conditions changed hands.
