Identify Accumulation Phase for Swing Trading | Price Action & OBV Strategy
On-Balance Volume (OBV) is a technical analysis indicator that uses volume flow to predict changes in stock price, helping traders identify trends, potential reversals, and support/resistance levels.
Here's a more detailed explanation:
What it is:
OBV is a cumulative indicator that measures buying and selling pressure by adding volume on up days and subtracting volume on down days.
How it works:
When the closing price is higher than the previous closing price, the day's volume is added to the cumulative OBV total.
When the closing price is lower than the previous closing price, the day's volume is subtracted from the cumulative OBV total.
The resulting OBV value is then plotted as a line on a chart.
PGDM in finance, having 5+ experience in Equity, commodities , forex analysis and trading.
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