What is the volume of balance?
On-line volume is a method of sharing analysis that judges shares in terms of volume in which they were traded on a certain day. It is calculated by deducting the volume of trading on that day from the cumulative sum if the shares fall or add volume if the shares are closed from the previous day. The theory that is behind the balance, or giant, is that the volume of trading will prevent any price movements. For this reason, if it is significantly in both directions, investors who believe in its accuracy will buy or sell accordingly. Since the prices of specific shares are usually determined by the volume of trading on this particular stock, there is the reason that the volume measurement will be an accurate indicator of inventory movement. Introduced in 1963 Joseph Granville, the volume for balance takes the theory of volume-price and extrapolates reliable liver for investors.
volume for balance of a particular warehouse is cumulative cellsThe number of number, added on days when the stock price increases and deducted from the moment the price drops. Finally, it is important what the real sum of OB on a certain day is. It depends on how much it rises or falls and how steep falls or the rise is when it is mapped on the graph. If the slope in both directions is steep, it means that there has been a significant change in the obv.
Investors will then use the volume for balance in conjunction with the price change to determine whether the trend is reliable. Obviously, the price will rise when it is upside down and vice versa. Investors monitor how far the price rises or falls in conjunction with the slope to OB. In this way, they are looking for either a trend confirmation or the possibility that this trend is misleading.
For example, if the increase in stocks is accompanied by a steep movement of volume compared to the rise, it is a good indicator that this trend should continue. This is because the so -called smart money controls the price change and the public will soon follow. On the other hand, if the price increase is accompanied by only smallThe OB jump, then it is likely that the trend is weak and can reverse quickly. ObV works in the same way when trying to measure trends down.