Category: Money tips Release Date: 2006-03-01
Principle:
From the viewpoint of mechanics explained that the stock trading volume as the ebb and flow of energy, plus mover constant static and dynamic laws of inertia are constant static; up objects will fall sooner or later the gravitational theory, or only by constantly supply more energy in order to maintain the original direction.
Benefits: The leading indicator for the stock price can be predicted the advent of high-price or reserve price.
Disadvantages: itself an indication of the volume, a warning is required for the sale of point of reference to other indicators.
Judged Skills:
1. OBV line down, while the stock price will rise, as a sell signal.
2. OBV line up, while the stock price decline, in order to buy the signal.
3. OBV line with a slow rise, as a buy signal, and vice versa.
4. OBV line showed a sharp increase in that volume to increase too fast, should be prepared to sell.
5. OBV line from positive to negative when the down trend that should sell the stake, otherwise, OBV line from negative to positive when the buy signal.
6. Likely to form high price of M head, if the second top, OBV line unable to rise in volume but shrinking, this time easy-to-head and fell to form M, deviated from the phenomena.
7. On the contrary, it may form a low-cost W at the end, if the second end, OBV line leading up, volume expansion, this time easy to form a W at the end of the price rise, depart from the phenomenon of the two.
8. Finally a rising tidal wave in the fall, if fall below its previous low tide can be used as a basis for reversal identified.
9. The last decline in the l tidal wave, if the break up of their previous high tide can be used as a basis for reversal identified.
10. When the OBV have more than one month or more, broadly in line with the level of lateral movement, the representative of the market is in a long consolidation period. At this point the big move may occur at any time.
