OBV index is also called energy tide, also known as net trading volume index. It is a technical indicator that specifies the market atmosphere by cumulative daily demand and supply and digitizing it, and then combines the securities price trend chart to infer the market atmosphere from the relationship between price changes and increase or decrease in trading volume.
calculation formula: OBV on the day = OBV on the previous day + Today's trading volume
It should be noted that if the closing price on the day is higher than the closing price on the previous day, take a positive value, otherwise take a negative value and get zero on the flat market.
OBV treats the trading volume when the stock price rises as popularity accumulation, and performs corresponding additions, while treats the trading volume on the day the stock price falls as popularity discrete, and performs subtraction operations. Common methods for using the
OBV indicator are as follows: :
1, OBV line declines and stock price rises, indicating that the main force is virtually pulling the stock price and is secretly shipped, which should be a selling signal.
2. When the OBV line rises and the stock price falls, it means that the main force is making a false move and is intervening at a low point, which should be a buying signal.
3. When OBV flattens horizontally for more than three months, it means that there is funds quietly absorbing them, and it is necessary to pay attention to a large market situation at any time.
As shown in the above figure, the stock price of Bohai Co., Ltd. hit a new low on February 9, but OBV has begun to rebound, forming a bottom divergence from . The stock price then rose rapidly. On March 26, the stock price adjusted again, but OBV led the rebound again, and then the stock price rose sharply.
Energy Tide Index (OBV) buying and selling points:
1. When the OBV indicator continues to consolidate sideways for more than three months, the multiple parties may have accumulated sufficient strength. After that, once the OBV indicator breaks upward, a bullish buying signal will be formed.
2. When the stock price falls, if the OBV indicator rises, it will form a bottom divergence of the OBV indicator, which is a bullish buying signal.
3. When the stock price rises, if the OBV indicator falls, it will form an OBV indicator top divergence from , which is a bearish selling signal.
4. When the OBV indicator and the stock price rise together, it means that the market is in a benign upward range, which is a signal that the upward trend will continue.
5. When the OBV indicator accelerates to rise, if the stock price rises does not accelerate, a bearish selling signal will be formed.
Operation points:
1. If the stock price continues to fall during the OBV indicator sideways consolidation process, it means that the stock price shrinks when it falls, shrinks when it rebounds, and eats when it rebounds. This is a signal that the bears have limited momentum to sell and the bulls are resisting. In this case, the bullish signal will be stronger.
2. The longer the OBV indicators are consolidating sideways, the greater the room for stock price to rise in the future.
OBV energy wave usage method:
The stock price rises and the OBV line falls, indicating that the buying is weak and the stock price may fall back.
The stock price fell and the OBV line rose, indicating that buying was strong and the stock price may stop falling and rebound.
OBV line slowly rises, indicating that the buyer's popularity is gradually increasing, which is a buying signal.
OBV line is more effective in determining the second peak of double top . When the stock price falls from the first peak of the double top and rebounds again, if the OBV line can rise simultaneously with the stock price trend and the price and volume are coordinated, you can hold the stock with confidence. On the contrary, when the stock price rebounds again and the OBV line fails to cooperate synchronously but shows a decline, a second peak may be formed, completing the double top pattern, which is a selling signal at this time. When the
OBV line changes from a positive cumulative number to a negative number, it is a downward trend and you should sell the stocks you hold. On the contrary, when the OBV line changes from a negative cumulative number to a positive number, you should buy stocks. The biggest use of the
OBV line is to observe when the stock market will break away from the tide and the future trend after the breakthrough. The direction of the OBV line changes is an important reference index.
OBV flight theory practical case:
OBV indicator capture bull stocks:
technical analysis indicators, and often different indicators will give different direction instructions at the same time, making it difficult for investors to understand. Therefore, you must understand technical indicators, but you don’t need to understand them all. Only proficient in one or two technical analysis indicators will be of great benefit to improving your chances of winning stock trading.I often use OBV in hunting villages, because the main force can use 100 or even 1,000 accounts to conceal his position, but he cannot conceal the action of "buy" no matter what. The one who monitors this action is OBV.
When the stock price has fallen sharply, the 0BV value has obviously stopped falling and stabilized, and has been moved horizontally for more than one month, with an approximate level, indicating that the market is in a long period of consolidation, and most investors have left the market without patience. However, at this time, it often indicates that the energy of short selling has gradually decreased, and the funds taken at lows have gradually increased, and large markets may occur at any time. When the 0BV value can effectively climb upward, it means that the main collecting stage has been completed. When the OBV diverges from the stock price, the upward trend is insufficient, which is the "distribution" stage. When OBV diverges from the stock price bottom, it is the "collect chips" stage.
For the medium and long-term main force, it is necessary to absorb a large amount of chips as much as possible when the stock price is at the bottom, and then pull it to a high place to distribute. During the bottom-collecting chips, the stock price will inevitably rise due to the buying of the dealer, and the trading volume will increase. At this time, in order to reduce the cost of fund-absorbing, the dealer will suppress the slightly rising stock price downward and continue to absorb funds after reaching the bottom. Repeat this until you have enough chips. This process is reflected in OBV, which means that the stock price consolidates at the bottom, while OBV rises one after another, forming a bottom divergence pattern. The change in the amount of
OBV reflected is particularly obvious, which is also a magical way to capture the entry and exit of the main force in ! As long as the main force has actions, it will be reflected on this indicator. If we learn to look at this indicator, we can synchronize with the main force.
Use OBV to cooperate with the main force to enter and exit the stocks and escape the fate of the takeover man!
OBV precautions
1. OBV cannot be used alone, it must be used in combination with the stock price curve to play a role.
2. Changes in OBV curve confirm the current stock price change trend. When the stock price rises (declines) and OBV also rises (declines) accordingly, the current upward (decline) trend can be confirmed. When the stock price rises (declines), but OBV does not rise (declines) accordingly and there is a divergence phenomenon, the degree of recognition of the current upward (decline) trend will be greatly reduced. OBV can tell us in advance that the trend is insufficient and there is a possibility of a reversal.
3. The contents of morphology and tangent theory are also applicable to OBV curves.
4. After the stock price enters the consolidation zone, the OBV curve will first reveal a signal of leaving the consolidation, breaking up or down, and the success rate is relatively high. The OBV line is an important judgment indicator for predicting short-term fluctuations of the stock market, which can help investors determine the development direction of the stock market after breaking through the market; and the trend of OBV can partially show the flow of major funds within the market, which is conducive to indicating investors' tendencies to be bullish and bearish in the market.
below share with you the general outline of the stock market map, K-line, moving average foundation, tangent line, indicator analysis, stock selection, sector rotation and various scams in the stock market. I hope to give you a comprehensive review of the stocks votes knowledge.
1, stock market map general outline
2, K-line basic
3, moving average basic
4, tangent basic
5, indicator analysis
6, statistical analysis
7, stock selection method
4, stock selection method
5, indicator analysis
6, statistical analysis
7, stock selection method
html l208, sector rotation
9, various scams in the stock market
Due to limited layout, if you can't see the pictures clearly or like the editor's article, you can follow the official account Yuesheng Guide (yslc688). More future market operations and stock technical analysis methods are waiting for you to learn, and there will be a steady stream of dry goods!
In any industry, as long as you are good at grasping essential problems, the hope of success will be greater. The essence of the stock market: This market is not a market that can be fully invested in. Everyone comes from arbitrage speculation, and the speculation component is too large. That is, this market is a speculative market. When we enter this market, we must focus on speculation and look at this market from a speculative perspective. In China's stock market operations, the following rules should be established and adhered to in terms of concept.
1. Risk first rule
Most investors often think a lot about how to make money, but they think little about how to prevent losing money.In a speculative market, risk control should be put first. If the risk of speculative cannot be avoided, it is impossible to make money from investment. Therefore, the correctness of concepts and methods should be based on risk control. Regardless of whether you make money or not, you must first consider how to avoid losing money. When there is a risk, you should avoid it first. It is better to miss the opportunity and not take risks. Only by first ensuring that you do not lose money can you make money. When there is risk in the market and individual stocks, you should avoid it first and operate when the opportunity exceeds the risk. Don’t do it when you can’t understand and be sure of it. Do it when you are sure of it. It is impossible to seize every opportunity in the market.
We need to remember the following content.
(1) It is correct to make money with a high probability of risk; it is wrong to make money with a small probability of risk.
(2) The probability of making money is high and the probability of risk is also high. It varies from person to person and from market to market; it is good if the market conditions are good and the personal foundation is deep.
(3) has a small probability of making money and a small probability of risk, so there is no need to operate.
Remember: There is no trick in the stock market, only the relative technique of integrating concepts, methods and psychology.
2. Quantitative change and qualitative change rules
The development of things is from quantitative change to qualitative change. The change of stock trend is a process from quantitative change to qualitative change. The fundamental reason for the reversal is that the transformation of quantitative change between long and short has reached the extreme. The reason why the trend can be maintained for a certain period of time after the trend is formed is a process of release of long and short forces.
(1) In the process of accumulating forces between multiple parties (expending power of short parties), we must pay close attention to the turning points of qualitative change and intervene in time.
(2) In the process of releasing the power of the multi-party (accumulating the power of the short side), we must pay close attention to the weakness of the power of the multi-party and reduce positions when the price is high.
(3) When long turns short, you should avoid risks in time.
(4) During the release of the power of the short side, try not to participate as long as the short side is not completely released.
Note: From quantitative change to qualitative change, that is, from gradual change to mutation.
3. Overall and local rules
(1) The market and individual stocks are the relationship between the whole and the local.
(2) Which process does individual stocks or market run in the stock price cycle? The cycle is the whole, and each process is partial.
The market or individual stocks must go through the processes of bottoming out, rising, heading out, and falling. Each process can be divided into three stages: the beginning, middle and end. When trading stocks, we cannot just look at a few K-lines or time-sharing charts to operate. We must first distinguish which process and stage the individual stock is running. Only in this way can we truly know whether individual stocks can operate, whether they are suitable for medium-term operations or short-term operations. Otherwise, if you blindly enter/take out and understand the operation of individual stocks one-sidedly, you may be deceived.
4. The principle of internal and external factors and the principle of inevitable and accidental
The operation of stocks is promoted by both internal and external factors. Internal factors are the fundamental factors for changes in the stock market, and external factors are only conditions for change.
internal factors such as: economic development, corporate performance, accumulation and transformation of long and short forces, etc.
External factors such as: policy changes, domestic and foreign emergencies, corporate emergencies, etc.
Remember: You cannot use an accidental success as an inevitable method.
5. There are no simple rules for the stock market
The reason why the stock market has fewer winners and more losers is because there are no simple rules for the stock market to follow.
We need to remember the following content.
(1) There are no simple trick rules. A comprehensive and dialectical dynamic trading system must be established.
(2) The success rules of experience. Successful experiences are temporal, conditional, environmental and reference characteristics.
① Timeliness: Experience is a successful experience formed in a certain time, and changing time may become an unsuccessful experience.
② Conditionality: Experience is formed under specific conditions and environment. If the environmental conditions change, the original experience will change accordingly.
③ Reference: Theories in the stock market are formulated based on constant factors of the stock market, while experience does not have long-term stability and long-term effectiveness, so experience is only reference.
Therefore, when applying experience, you must carefully analyze the conditions and environment, and apply flexibly according to the situation, time, conditions and environment.We must look at the stock market and experience with a comprehensive dialectical, dynamic and developmental thinking.
Remember: the stock market is dynamic, not static.
6. There must be obstacles when winning money.
If there are no obstacles in the way to make money, most people will succeed. The stock market is a place where people gather and a place for money competition. There must be obstacles in technical competition and money competition. Disorders are divided into: natural disorders and man-made disorders. Natural obstacles are caused by the laws of the market themselves. Artificial obstacles are mainly designed by the main market forces. But this does not mean that the stock market has no rules, but that the stock market has no simple rules, and the stock market itself is known. The most critical issue is to grasp the unchanging laws of the market, make full use of this unchanging laws, and make money in the stock market while controlling risks.
7. Rules for rules being used
Rules in the stock market are often used, especially some classic theories, to deceive investors. However, some rules in the stock market cannot be used. We must learn to use these unchanging laws, especially medium and long-term laws. The stock holding thinking developed in a bull market is wrong, and it is wrong to still insist on holding the stock holding thinking in a bear market; at the end of the bear market, it is wrong to know that it is not possible to hold the stock, so the main force is to use this law of slow thinking change, so that investors can hand over the chips at the end of the bear market, and then hold the stocks at the end of the bull market, thereby making investors money.
8. Probability Rules
To make money, you must be probable. You must take small risks, take less risks, take less risks, lose less money, lose less money, make more money, make steady money, and make big money. Therefore, it is better to do less than take risks. It is better to lose small profits multiple times, as long as you can make big money once.
If you want to increase the probability of success, you can do the following.
(1)Don’t treat small problems or minor issues as main issues or principles. Don’t act as a good deal at a high level, and don’t act as a bad deal at a low level.
(2) Do not regard individual phenomena as common phenomena, and do not use the experience of buying a certain stock in the past to use other individual stocks.
(3) If the probability is low and you are not sure, just look at it and don’t do it. Do not do things that do not conform to the concepts and trading systems, only earn rational and reasonable things, do not gamble or try luck. Abide by discipline and keep your mind calm.
If you cannot establish a concept that suits you and establish a trading system with a high probability of success, you will not be able to develop a habit of considering the problem from the probability of success, and it will be difficult to survive in the stock market.
(The above content is for reference only and does not constitute operational advice. If you operate by yourself, pay attention to position control and risk at your own risk.)
Statement: This content is provided by Yuesheng Strategy and does not mean that the Investment Express recognizes its investment views.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-