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Re: frenchee post# 8237

Thursday, 11/17/2022 2:48:07 PM

Thursday, November 17, 2022 2:48:07 PM

Post# of 8302
Elephant in the Room--On Balance Volume(OBV)

Bullish and bearish divergence signals can be used to anticipate a trend reversal. These signals are genuinely based on the theory that volume precedes prices. A bullish divergence forms when OBV moves higher or forms a higher low even as prices move lower or forge a lower low. A bearish divergence forms when OBV moves lower or forms a lower low even as prices move higher or forge a higher high. The divergence between OBV and price should alert chartists that a price reversal could be in the making. A bearish divergence is happening now.

C Fund, Daily Chart

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