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Re: **D*A** post# 436

Tuesday, 12/14/2010 10:20:46 PM

Tuesday, December 14, 2010 10:20:46 PM

Post# of 5832
watch OBV.....OBV provides a running total of volume and shows whether this volume is flowing in or out of a given security.

OBV attempts to detect when a financial instrument (stock, bond, etc.) is being accumulated by a large number of buyers or sold by many sellers. Traders will use an upward sloping OBV to confirm an uptrend, while a downward sloping OBV is used to confirm a downtrend. Finding a downward sloping OBV while the price of an asset is trending upward can be used to suggest that the "smart" traders are starting to exit their positions and that a shift in trend may be coming










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