USE OF MOMENTUM INDICATOR OBV
Stock Market Technical Analysis Course in Hyderabad Ameerpet,
The On Balance Volume was developed by Joe Granville is a momentum indicator that relates volume to price.
On Balance Volume is a running total of volume. It shows if volume is flowing into or out of a security and when the security closes higher than the previous close, all of the day's volume is considered up-volume. When the security closes lower than the previous close all of the day's volume is considered down volume.
On Balance Volume is a simple calculation.
1. On an up day, the volume is added to the previous day's OBV
2. On a down day, the volume is subtracted from the previous day's OBV.
The OBV is in a rising trend when each new peak is higher than the previous peak and each new trough is higher than the previous trough. Similarly, the OBV is in a falling trend when each sequential peak is lower than the previous peak and each trough is lower than the previous trough. When the OBV is moving sideways and is not making continuous highs and lows, it is in a doubtful trend.
The On Balance Volume indicator can be used by investors as a tool to confirm price trends or warn of potential price reversals because of divergences between the price and the OBV indicator.
The method of inspecting On Balance Volume is carved for trading short-term cycles. According to Granville, investors must act quickly and decisively if they wish to profit from short-term OBV analysis.
Mr. Chakravarthy is a teacher par excellence. He is a mine of vast deposits of knowledge of stock market, Best Stock Market Courses Training Hyderabad - ASC NCFM Academy Hyderabad is the best institute for NCFM Modules courses training- NISM Modules courses training in Hyderaba, it is reputed for its training delivery standards and most popular for Financial Markets Training, Share market training, Stock market training, Forex markets training, Derivatives markets training, fundamental analysis training, Stock Market Technical Analysis Classes Training Hyderabad, Commodity market training and Best for Options trading training - Intraday trading training in Hyderabad.
ASC NCFM Academy Hyderabad has imparted training to hundreds of batches and thousands of students since 2004. ASC way of presenting the concepts like arbitration, hedging, patterns, turn over ratios, moving averages and indicators is marvelous. Our fafulty has a gift of analyzing the past and predicting the future trends. A.S.Chakravarthy NCFM Academy Hyderabad is considered to be monopoly institute in providing best NCFM Training Institute in Hyderabad : ASC NCFM Academy.