I. Introduction of Car TV
The obv indicator was created by JoeGranville, an American investment analyst. It mainly speculates the stock price trend by counting the changing trend of trading volume. OBV takes the "N" shape as the fluctuation unit, and its graph is composed of many "N" waves. For the "N" wave whose wave is higher than the wave, we call it the rising tide, and the ebb tide in the rising tide is called the ebb tide. The calculation formula of OBV is: today obv= the previous day obv+ today's turnover.
Second, the meaning of obv
Obv quantifies the trading volume and makes a trend line. Use the trend line of stock price to infer the market atmosphere from the relationship between price change and volume increase and decrease. The main theoretical basis of obv is that the change of market price must be coordinated with the volume, and the fluctuation of stock price is closely related to the expansion or contraction of volume. Under normal circumstances, the trading volume required for stock price rise is always large; When it falls, the volume may be enlarged or decreased. If the price rises and falls without the corresponding rise and fall of trading volume, the change of market price is unsustainable. In the obv indicator, there are also cases where the trading volume usually precedes the stock price.
Third, the application principle of obv line
1) When the small N-type line continues to rise, there is a big N-type rising state, and the market may reverse at any time.
2) If 2) the 2)OBV line moves horizontally for more than a month, and then suddenly soars, it means that the big market may happen at any time.
3) The OBV line is N-shaped, and when the OBV line exceeds the previous N-shaped high point, an upward arrow is recorded; When the OBV line falls below the previous low n, write down the downward arrow.
4) When the trend of 4)OBV line deviates from the stock price curve, it means that the trend at that time is false. No matter whether the stock price is up or down at that time, it may reverse at any time, which requires special attention.
5) When the OBV line continuously forms an N-shaped rising state, it means that the rising stock price will reverse.