t seven technical indicators
ce volume indicator (OBV) to measure the positive and negative flow
First up, use the on-balance volume indicator (OBV) to measure the positive and negative flow of volume in a security over time.
g total of up volume minus down volume
, it acts like a trend confirmation tool
. If the price is rising but OBV is falling,
e ADX is above 40, the trend is considered to have a lot of directional strengt
When the ADX indicator is below 20, the trend is considered to be weak or non-trending.
ADX above 20 and DI+ above DI-: That's an uptrend.ADX above 20 and DI- above DI+: That's a downtrend.ADX below 20 is a weak trend or ranging period, often associated with the DI- and DI+ rapidly crisscrossing each other.
When the Aroon-up crosses above the Aroon-down, that is the first sign of a possible trend change.
f the Aroon-up hits 100 and stays relatively close to that level while the Aroon-down stays near zero, that is positive confirmation of an uptrend.
Divergence is another use of the RSI. When the indicator is moving in a different direction than the price, it shows that the current price trend is weakening and could soon revers
, the stochastic is often used as an overbought and oversold indicator
icator to move above 80 and then drop back below to signal a possible short trade. The 20 level is less significant in a downtrend.
If the indicator line is trending up, it shows buying interest, since the stock is closing above the halfway point of the range.