On Balance Volume (OBV) measures buying and selling pressure as a cumulative indicator that adds volume on up days and subtracts volume on down days.
The On Balance Volume is displayed at the bottom of the chart. The OBV line goes up when today's closing price grows and goes down when yesterday's closing price is higher than the current one.
The OBV indicator generally identifies a breakout before the price line does and helps in establishing a clear upward trend. If you want to trade with this strategy, you open a forex position at the breakout price level and place a stop loss above the recent high swing
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