What is the Average Daily Volume?

On average volume (on balance volume), the abbreviation OBV is more commonly used, is an important volume indicator used in investment technical analysis, also known as average volume index. Invented by American JEGranville. Count the daily trading volume from the base date, add the trading volume on the day of the stock price rise to the cumulative value, and subtract the trading volume on the day of the stock price drop from the cumulative value. It is thought that the increase in stock price is caused by the buyer's push, and the decline in stock price is caused by the seller's push. When the strength of the buyer is strengthened, it means that the stock price rises, otherwise it means that the stock price will fall.

Average volume

The average volume analysis is mainly used for observation

The average volume is the average volume of each transaction. It is an effective method for measuring whether large households enter the market to buy or sell stocks. From the change of average volume, short-term changes in stock prices can be analyzed. Its calculation formula is:

Average volume = volume ÷ number of transactions