The Relationship Between Stock Price Fluctuation And Stock Turnover

OBV line also known as

1. calculation method

Daily cumulative total daily stock market turnover (Market Forum), the day when the market price is higher than the previous day, the total volume is positive, otherwise negative, if flat, then zero.

That is: the day before the day of OBV= OBV + today's volume.

Then the accumulated volume will be connected to the line by fixed points.

2. application principles

The basic theory of the OBV line is based on the high correlation coefficient between the stock price change and the turnover value, and the turnover value is the first index of the stock price change. The short-term stock price volatility is not completely consistent with the rise and fall of the company's performance, but is influenced by the popularity. Therefore, the change direction of the stock price can be predicted from the change of turnover volume.

(1) when the stock price rises and the OBV line drops, it means that the energy is insufficient, and the stock price may fall back.

(2) when the stock price falls and the OBV line rises, it means that the stock market is going to rebound.

(3) when the stock price rises and the OBV line rises slowly, it means that the stock market will continue to look promising.

(4) when the OBV line rises, no matter whether the stock price rises or falls, it means that the energy is about to run out, and the stock price may rise and reverse.

3. judgement

(1) OBV line basis.

(2) the OBV line is an important judgement method for the short term fluctuation of stock market, but the OBV line should be judged with the trend of stock price.

(3) the OBV line can help determine the development direction of the stock market after breaking the board.

(4) the trend of OBV can partially show the direction of the movement of main funds in the market, showing that the unusual excess volume in the current period is hovering at low prices or at high prices, which enables technical analysts to take a step forward and understand the internal causes of the market.

(5) the OBV line has a relatively standard indication of the determination of the second peaks of the double summit. When the stock price falls from the top of the double peak and rebounded again, if the OBV line can synchronize with the stock price trend, the price matching may continue to have a multi market and a higher peak. But on the contrary, when the stock price rises again, the OBV line fails to synchronize with each other, but the decline may result in the formation of second peaks to complete the pattern of double peaks, and further lead to the rise and fall of stock prices.

(6) the scope of application of the OBV line is biased towards short-term entry and exit, and has nothing to do with basic analysis.

At the same time, OBV can not effectively reflect the turnover of the current market.