I am using volume indicator in my trading. But it is very simple and not comfortable to follow all the time. I started using other volume indicators. As a result found On Balance Volume indicator as a very useful volume indicator. After testing indicator I decided to share trading with OBV method in Article contest.

Note: OBV is suitable for trading stocks and does not work well with currency pairs!

What is On Balance Volume Indicators?
OBV was developed by Joseph Granville in 1960s. He found that when volume increases while price stays stable later price jumps. And vice versa happens when volume drops while price stays on the same level. A rising OBV reflects positive volume pressure that can lead to higher prices. Conversely, falling OBV reflects negative volume pressure that can foreshadow lower prices.
Investopedia says:
The theory behind OBV is based on the distinction between smart money – namely, institutional investors – and less sophisticated retail investors. As mutual funds and pension funds begin to buy into an issue that retail investors are selling, volume may increase even as the price remains relatively level. Eventually, volume drives the price upward. At that poi
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