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Replies to #436 on 3rd Leg Trading
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12/14/10 10:20 PM

#440 RE: **D*A** #436

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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