Analysis of
Basic rules:
Lowering the volume - reduction of interest in the dynamics of the course, or a change in trend or a temporary stabilization of prices
Increased volume - increasing interest in the dynamics of the course, or reinforce existing dynamics or the emergence of a new trend of price changes
Sometimes a gradual decrease in volume is accompanied by sharp changes in price
The peaks of the volume signals a possible trend reversal
Analysis of indicators, using indicators of
Equilibrium volume indicator (On Balance Volume - OBV)The total value of the daily volume is assigned a positive sign, if the closing price higher than the previous, and negative if it is lower than the previous. Continuous cumulative changes by adding or subtracting the daily amount depending on the direction of the dynamics of the closing prices.In interpreting the indicator it is important to the very direction of the curve, rather than specific targets.If the curve of stops moving in the same direction as the price, there is a discrepancy, indicating a possible reversal.For the analysis of the curve as applicable OBV trend and oscillatory methods of analysis.
Indicator of accumulation (Volume Accumulation - VA)
VA = {[(C - L) - (H - C)] / (H - L)} x V + VA -1, whereC - closing priceL and H - min and max priceV - volume.
The total daily volume takes a positive value only if the closing price is equal to the maximum price of the day, and, conversely, when the closing price equal to the minimum, the entire daily volume gets a minus sign.
Signals:
unidirectional changes of the indicator and the price of the bull market and bearish divergence in the trend - a trend confirmed
Bullish divergence and a bearish convergence - the refutation of the trend
VA Index
IVA = (VA 0 + VA -1 +...+ VA-n +1 / (V 0 + ... V-n +1), is equal to the sum of indicator values VA n days, divided by the sum volume for n days.
Signals:
index greater than zero and is growing - the bull market (buying)
index is less than zero and decreases - a bear market (sale)
Chaikin Oscillator.
CHO = MA (VA, m)-MA (VA, n), wherem - mean a greater order of magnitude;n - a smaller order of the mean.The analysis is similar to the analysis of MACD.
Indicator Accumulation / Distribution (Accumulation / Distribution - A / D)
A / D = [(C - O) / (H - L)] x V + A / D -1, whereC & O - the closing price and openingL and H - min and max priceV - volume.
Meaning and analysis of the indicator is similar to the previous one.
The trend of price-volume (Volume Price Trend - VPT)
VPT = VPT -1 + Volume x (P - P -1) / P -1, whereVPT -1 - previous value of the indicator,Volume - the volume, the amount of changeP - current priceP -1 - previous value for money.The indicator should not only consider the direction of price changes, but the magnitude of this change.
Signals:
large positive value - the market is overbought
large negative value - market pereprodannnost
The boundaries of overbought / oversold matched analyst independently.
Basic rules:
Lowering the volume - reduction of interest in the dynamics of the course, or a change in trend or a temporary stabilization of prices
Increased volume - increasing interest in the dynamics of the course, or reinforce existing dynamics or the emergence of a new trend of price changes
Sometimes a gradual decrease in volume is accompanied by sharp changes in price
The peaks of the volume signals a possible trend reversal
Analysis of indicators, using indicators of
Equilibrium volume indicator (On Balance Volume - OBV)The total value of the daily volume is assigned a positive sign, if the closing price higher than the previous, and negative if it is lower than the previous. Continuous cumulative changes by adding or subtracting the daily amount depending on the direction of the dynamics of the closing prices.In interpreting the indicator it is important to the very direction of the curve, rather than specific targets.If the curve of stops moving in the same direction as the price, there is a discrepancy, indicating a possible reversal.For the analysis of the curve as applicable OBV trend and oscillatory methods of analysis.
Indicator of accumulation (Volume Accumulation - VA)
VA = {[(C - L) - (H - C)] / (H - L)} x V + VA -1, whereC - closing priceL and H - min and max priceV - volume.
The total daily volume takes a positive value only if the closing price is equal to the maximum price of the day, and, conversely, when the closing price equal to the minimum, the entire daily volume gets a minus sign.
Signals:
unidirectional changes of the indicator and the price of the bull market and bearish divergence in the trend - a trend confirmed
Bullish divergence and a bearish convergence - the refutation of the trend
VA Index
IVA = (VA 0 + VA -1 +...+ VA-n +1 / (V 0 + ... V-n +1), is equal to the sum of indicator values VA n days, divided by the sum volume for n days.
Signals:
index greater than zero and is growing - the bull market (buying)
index is less than zero and decreases - a bear market (sale)
Chaikin Oscillator.
CHO = MA (VA, m)-MA (VA, n), wherem - mean a greater order of magnitude;n - a smaller order of the mean.The analysis is similar to the analysis of MACD.
Indicator Accumulation / Distribution (Accumulation / Distribution - A / D)
A / D = [(C - O) / (H - L)] x V + A / D -1, whereC & O - the closing price and openingL and H - min and max priceV - volume.
Meaning and analysis of the indicator is similar to the previous one.
The trend of price-volume (Volume Price Trend - VPT)
VPT = VPT -1 + Volume x (P - P -1) / P -1, whereVPT -1 - previous value of the indicator,Volume - the volume, the amount of changeP - current priceP -1 - previous value for money.The indicator should not only consider the direction of price changes, but the magnitude of this change.
Signals:
large positive value - the market is overbought
large negative value - market pereprodannnost
The boundaries of overbought / oversold matched analyst independently.
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