OBV stands for "On-BalanceVolume", which is the trading volume balance volume. It is a technical indicator that measures buying and selling pressure on a stock. The calculation method of OBV is very simple: divide the daily trading volume into buying and selling parts, and then compare the buying volume and selling volume. If the buying volume is greater than the selling volume, the OBV will rise, and vice versa. . The calculation process of OBV is relatively intuitive, so it is often used to assist in judging stock price trends.

The advantage of the OBV indicator is that it can eliminate the impact of certain emergencies and can incorporate the volatility of trading volume into the calculation. For example, if a large number of shares are sold but the price does not fall, this may indicate that buyers are acquiring shares. In this case, OBV will rise, reflecting positive sentiment in the stock market. In addition, OBV can also help investors determine the support and resistance levels of trend lines, thereby developing more informed investment strategies.

OBV indicator is widely used in technical analysis. In addition to the stock market, it can also be applied to various markets such as forex, futures, and cryptocurrencies. However, investors need to note that OBV is not a universal indicator. Like other technical indicators, OBV has its limitations and shortcomings. Therefore, investors need to use OBV in conjunction with other indicators and conduct analysis and judgment based on their actual situation to achieve the best investment results.