Trading TermsOutside Reversal Month Fractals Variable-Length Moving Average Ask Documents against Payment (D/P) ERISA
On-Balance Volume
In finance, we often use a line graph to track cumulative volume, which represents the total volume of a day's trading. A higher close compared to the previous day is given a positive value, while a lower close is given a negative value. Traders use this On-Balance Volume (OBV) to confirm a trend or to spot a divergence between the market and the OBV, which could signal a potential reversal. This tool is essential in understanding market movements and making informed trading decisions.
Related terms
Understand the meaning and definition of Outside Reversal Month in the context of stock market, trading, and investments.
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