The advantage of OBV index is that it can eliminate the influence of some emergencies and include the fluctuation of trading volume in the calculation. For example, a large number of stocks are sold but the price has not fallen, which may indicate that buyers are buying stocks. In this case, OBV will rise, reflecting the positive mood of the stock market. In addition, OBV can also help investors to determine the support level and resistance level of the trend line, so as to formulate more sensible investment strategies.
OBV index is widely used in technical analysis. In addition to the stock market, it can also be used in various markets such as foreign exchange, futures and cryptocurrency. However, investors should note that OBV is not a general indicator. Like other technical indicators, OBV has its limitations and shortcomings. Therefore, investors need to combine OBV and other indicators and analyze and judge according to their own actual situation in order to achieve the best investment effect.