On Balance Volume can be used to either confirm the current price trend or warn of a possible reversal. OBV shows if volume is flowing into or out of a security, or the buying and selling pressure. When there's strong and increasing buying pressure, the price is almost certain to continue going up. The theory is that money from knowledgeable traders, or "smart money," can be seen flowing into the security by a rising OBV. When the public then moves into the security, both the security and the OBV will surge ahead. Read full report: http://www.chartfilter.com/reports/c29.htm All On Balance Volume (OBV) Articles: http://www.chartfilter.com/education/indicators/24.htm New to technical analysis? What is Technical Analysis? http://www.chartfilter.com/education/technicalanalysisbasics/what_is_technical_analysis.htm Short History of Technical Analysis http://www.chartfilter.com/education/technicalanalysisbasics/history_of_technical_analysis.htm Introduction to Dow theory http://www.chartfilter.com/education/technicalanalysisbasics/intoduction_to_dow_theory.htm Trendlines http://www.chartfilter.com/education/technicalanalysisbasics/trendlines.htm Support and resistance lines http://www.chartfilter.com/education/technicalanalysisbasics/support_resistance.htm More technical analysis indicators: http://www.chartfilter.com/education/technicalanalysis.htm Subscribe to our monthly technical analysis educational newsletter, an excellent resource for traders. Sign up here: http://www.chartfilter.com/archivednewsletter.htm Need to learn more? See what our technical analysis education books have to offer! http://www.chartfilter.com/ebooks.htm StockTools and StockScreener: Technical and fundamental screens, charts, alerts, portfolio, signal reports and more: http://www.chartfilter.com/products.htm http://www.chartfilter.com Technical Analysis and Stock Tools
