V.15:10 (468-471): On-Balance Volume by John Sweeney

V.15:10 (468-471): On-Balance Volume by John Sweeney
Item# \V15\C10\ONBALAN.PDF
Availability: In Stock

Product Description

The on-balance volume indicator is a technical tool that traders use to determine the trend of volume. Here are the basics.

The interplay of price and volume is the combination that is most discussed in traditional technical analysis. In these discussions, volume either confirms or does not confirm price movement by its expansion or contraction from prevailing values. Analysts examine the wildly fluctuating bar charts usually shown below price graphs to determine whether volume is truly expanding or contracting.

To smooth the fluctuations in volume and also provide an overall indicator of price direction, trader Joseph Granville proposed in 1976 that volume should simply be summed each day according to whether the price went up or down. If the price went up from close to close, the day’s volume would be added to the running total. If price went down, on the other hand, the day’s volume would be subtracted from the running total.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order