Category: Money tips Release Date: 2007-06-03
In analyzing the stock market trends, it is necessary to master OBV indicators for the application of the principle, to compensate for the stock price analysis of the shortcomings. OBV line tide of energy, also known as OBV is to quantify the volume and the value to be made of the trend line, with the share price trends, from the price changes and volume changes in the relationship, suggesting market sentiment.
OBV's theory is based on market price movements must have a turnover with the share price rise, volume must increase, but does not necessarily require changes in trading volume and stock price change is proportional to. Do not correspond to the price movements and trading volume movements, the market price changes difficult to continue. The starting point can be seen OBV is based on the volume of the leading indicator for stock prices, short-term fluctuations in stock price performance of the company is not a complete match, but by popular impact. Therefore, the changes in volume can predict the direction of stock price volatility.
Operation, the general is to OBV line and stock control lines, or if the difference from the trend, it considered to be one out of the signal. When stock prices frequently rise, hitting a new high point, OBV can not hit a new high, which means an increase of energy is inadequate; in other words, the strength of the market outlook has been used less, which is a sell signal. On the contrary, if the stock price fell more than, setting a new low when, OBV line is unwilling to drop or fall very little, did not hit a new low, indicating stock prices have been falling to almost, and the market outlook is expected to rebound. When the stock price rising OBV line synchronous rise slowly, it said that the stock market continue to be optimistic, still holding. When the OBV line sharp rise in short period of time, then the energy will soon run out, the share price may be reversed. In addition, observe the OBV in the application, can have a "the" shape fluctuations. When the OBV total of five times a partial high (or low) after a short-term reversal signals; when the local high point (or low) accumulated to 9, they should pay attention Quotes of the medium-term reversal.
As the 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, therefore, enable investors to grasp the broad market or individual stocks ahead breakthrough disc Bureau after the direction of development. However, it should be noted that, OBV line of short-term fluctuations in the stock market in general as an important way to judge and use OBV line must be judged with the analysis of price trends.
