by Bruce R.Faber
ONBALAN.pdf
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Introduction :
OBV is an indicator which can be used in automated trading strategy. It is a cumulative indicator based on the market price and the volume. Combined with other indicators, OBV has been used by chartists to for foreshadow a price trend by confirming the underlying trend or looking for divergences.
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Of all the factors in trading that technicians learn to analyze, surely price and volume are the first two.
Here, first-time STOCKS &COMMODITIES contributor Bruce Faber explains the basics behind this classic
technical tool.
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