The full English name of OBV is: On Balance Volume, and its Chinese and English name can be translated as: Balance Trading Volume, which was founded by American investment analyst Joe Granville. This indicator predicts the stock price trend by counting the change trend of trading volume. OBV takes "N" shape as the fluctuation unit, and multiple "N" waves form the OBV graph. For the "N" wave higher than the other side, it is called "high tide", and as for the falling bodies and falling bodies in the high tide, it is called "end".
OBV (energy wave)
I. Use:
This indicator predicts the stock price trend by counting the change trend of trading volume. OBV takes "N" shape as the fluctuation unit, and multiple "N" waves form the OBV graph. We call "N" waves higher than each other "high tide", and the falling bodies in the high tide are called "falling bodies field".
2. How to use it:
65438 +0. OBV line fell and stock price rose, indicating that buying power is not a selling signal.
2. When 2. The OBV line rises and the stock price falls, indicating that there is bargain-hunting intervention, which is a buying signal.
3. When the OBV level is leveled for more than three months, we should always pay attention to the big market.
3. Experience:
When OBV moves horizontally for more than a month, it means that the market is in a consolidation period, and most anxious investors have left one after another. This is the calm before the storm, and the big market may happen at any time.
Four. Calculation formula:
The calculation formula of OBV is simple. First of all, we assume that we already know the OBV of the previous trading day, and we can calculate today's OBV according to today's validity and the comparison between today's closing price and the closing price of the previous trading day. Expressed by mathematical formula as follows:
Today's OBV= yesterday's OBV+sgn× today's turnover.
Where sgn stands for symbol, and sgn can be+1 or-1, which is determined by the following formula.
Sgn=+ 1 Today's closing price ≥ yesterday's closing price.
SGN =- 1 today's closing price
Volume refers to the number of shares traded, not the transaction amount.