Индикатор Volumes Ф Форексе

The RSI is another forex indicator that belongs to the oscillator category. It is known to be the most commonly used forex indicator and showcases an oversold or overbought condition in the market that is temporary.

If the price trades are above the moving average, it means buyers are controlling the price, and If the price trades are below the moving average, it means sellers are controlling the price.

Fibonacci is another excellent forex indicator that indicates the exact direction of the market, and it is the golden ratio called
Several forex traders use this tool to identify areas and reversals where profit can be taken easily. Fibonacci levels are computed once the market has made a big move up or down and looks like it has flattened out at some specific price level.

What Is On-Balance Volume (OBV)?

On-balance volume (OBV) is a technical trading momentum indicator that uses volume flow to predict changes in stock price. Joseph Granville first developed the OBV metric in the book Granville's New Key to Stock Market Profits.

Granville believed that volume was the key force behind markets and designed OBV to project when major moves in the markets would occur based on volume changes. In his book, he described the predictions generated by OBV as "a spring being wound tightly." He believed that when volume increases sharply without a significant change in the stock's price, the price will eventually jump upward or fall downward.

Formula for On-Balance Volume (OBV)

​OBV=OBVprev​+⎩⎨⎧​volume,0,−volume,​if close>closeprev​if close=closeprev​if close<closeprev​​where:OBV=Current on-balance volume levelOBVprev​=Previous on-balance volume levelvolume=Latest trading volume amount​

Calculating On-Balance Volume

On-balance volume provides a running total of an asset's trading volume and indicates whether this volume is flowing in or out of a given security or currency pair. The OBV is a cumulative total of volume (positive and negative). There are three rules implemented when calculating the OBV. They are:

1. If today's closing price is higher than yesterday's closing price, then: Current OBV = Previous OBV + today's volume

2. If today's closing price is lower than yesterday's closing price, then: Current OBV = Previous OBV - today's volume

3. If today's closing price equals yesterday's closing price, then: Current OBV = Previous OBV

What Does OBV Tell You?

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 point, larger investors begin to sell, and smaller investors begin buying.

Despite being plotted on a price chart and measured numerically, the actual individual quantitative value of OBV is not relevant. The indicator itself is cumulative, while the time interval remains fixed by a dedicated starting point, meaning the real number value of OBV arbitrarily depends on the start date. Instead, traders and analysts look to the nature of OBV movements over time; the slope of the OBV line carries all of the weight of analysis.

Analysts look to volume numbers on the OBV to track large, institutional investors. They treat divergences between volume and price as a synonym of the relationship between "smart money" and the disparate masses, hoping to showcase opportunities for buying against incorrect prevailing trends. For example, institutional money may drive up the price of an asset, then sell after other investors jump on the bandwagon.

Example of How to Use OBV

Below is a list of 10 days' worth of a hypothetical stock's closing price and volume:

1. Day one: closing price equals $10, volume equals 25, shares
2. Day two: closing price equals $, volume equals 30, shares
3. Day three: closing price equals $, volume equals 25, shares
4. Day four: closing price equals $, volume equals 32, shares
5. Day five: closing price equals $, volume equals 23, shares
6. Day six: closing price equals $, volume equals 40, shares
7. Day seven: closing price equals $, volume equals 36, shares
8. Day eight: closing price equals $, volume equals 20, shares
9. Day nine: closing price equals $, volume equals 23, shares
10. Day closing price equals $, volume equals 27, shares

As can be seen, days two, three, six, seven and nine are up days, so these trading volumes are added to the OBV. Days four, five and 10 are down days, so these trading volumes are subtracted from the OBV. On day eight, no changes are made to the OBV since the closing price did not change. Given the days, the OBV for each of the 10 days is:

1. Day one OBV = 0
2. Day two OBV = 0 + 30, = 30,
3. Day three OBV = 30, + 25, = 55,
4. Day four OBV = 55, - 32, = 23,
5. Day five OBV = 23, - 23, =
6. Day six OBV = + 40, = 40,
7. Day seven OBV = 40, + 36, = 76,
8. Day eight OBV = 76,
9. Day nine OBV = 76, + 23, = 99,
10. Day 10 OBV = 99, - 27, = 72,

OBV vs. Accumulation/Distribution

On-balance volume and the accumulation/distribution line are similar in that they are both momentum indicators that use volume to predict the movement of “smart money”. However, this is where the similarities end. In the case of on-balance volume, it is calculated by summing the volume on an up-day and subtracting the volume on a down-day.

The formula used to create the accumulation/distribution (Acc/Dist) line is quite different than the OBV shown above. The formula for the Acc/Dist, without getting too complicated, is that it uses the position of the current price relative to its recent trading range and multiplies it by that period's volume.

Limitations of OBV

One limitation of OBV is that it is a leading indicator, meaning that it may produce predictions, but there is little it can say about what has actually happened in terms of the signals it produces. Because of this, it is prone to produce false signals. It can therefore be balanced by lagging indicators. Add a moving average line to the OBV to look for OBV line breakouts; you can confirm a breakout in the price if the OBV indicator makes a concurrent breakout.

Another note of caution in using the OBV is that a large spike in volume on a single day can throw off the indicator for quite a while. For instance, a surprise earnings announcement, being added or removed from an index, or massive institutional block trades can cause the indicator to spike or plummet, but the spike in volume may not be indicative of a trend.

The Bottom Line

On-balance volume (OBV) is a technical indicator that measures positive and negative volume flow and analyzes the trading direction. It shows as a single line that can provide insights into the intent of market players that investors can use to make trading decisions and identify where to buy or sell an asset. However, OBV doesn't provide specific information about the financial asset, which can lead to misinterpretations. Therefore, traders should balance OBV by using lagging indicators.

Forex volume indicators

Forex volume indicators.

Is it important to use a volume indicator when trading forex?
I personally think this is very important to know if and when there is enough volume on the market to be able to make a good trade.
I mean we all know it and I think we&#;ve all experienced it that the moment when you have just taken a nice trade, the pair suddenly goes into consolidation.
And we don&#;t want that and we should of course prevent that as much as possible.
For that reason alone, the use of a volume indicator is very important.
There are several volume indicators you can use and we have plenty to choose from.
I only use 2.
These are also fully explained in my course and I also think it is very important that everyone learns to use them correctly because these are probably the only indicators that can allow you to trade Supply and Demand successfully.
I mean it can be a very useful tool.

Today I am going to give you a little more explanation which indicators I use and also recommend to use as an extra conformation when you want to enter a trade.
Unfortunately, I won&#;t be able to tell you everything in this blog, but if you want to know more, you can always join the course where everything is explained step by step.

1. Volume Profile

Volume profile is 1 of the indicators that I recommend to use and especially if you are a Supply and Demand trader this is a very handy tool.

The most important thing this indicator shows is the POC.
See that red line? That&#;s the POC!
I will tell you if you just use the POC in your trading you will definitely become an even better trader.
And it doesn&#;t matter which strategy you have, this indicator is always handy to use next to it.
But what exactly is the POC and why is it so important?
POC means Point Of Control and it is important because it shows us at which point the most trading took place.
(Where the biggest trading positions were accumulated.)

But who accumulates these large trading positions?
That&#;s right! The big boys!
And when I talk about the big boys I am of course talking about the banks, hedge funds etc.
We all know these big guys are moving the market and.
And is it of course a big advantage if we know where and when they place their positions, don&#;t you think?
So to have an insight into that, we can use the volume profile where we can see the POC.
The big boys can&#;t hide where they place their big orders either.
Because we know &#;Big Guys&#; = &#;Big Positions&#; so they will always stand out on the volume profile.

Conclusion.
In short, the POC is where the big boys are.
The big boys who move the market.
I think you can now imagine that you can make much better trading decisions by using this indicator.

2. Volume.

Okay, I have already shown and explained the most important indicator above.
But there is another volume indicator that I sometimes use in my trading.
I&#;m going to show you this now!

I mainly use the volume indicator to see if there is enough volume on the market when I want to take a trade.
If this matches so I mean large volume when the price is at a Supply or Demand zone this gives me an extra conformation for a possible buy or sell.
(In this case, the colors of the volume indicator don&#;t matter).
This can also help you not to enter a trade that goes into consolidation.
Because the lower the volume, the greater the chance that price goes into consolidation.
And the higher the volume, the faster the price often moves.
You can also easily spot possible fake outs or a change in the trend with this indicator.
This is too much to explain in this blog but of course I also explain this completely in my course.

I hope I was able to help some of you with this blog to become even more successful in the forex market.

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Or want to know more about forex volume indicators?

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