Increasing OBV reliability with stock index futures by Gerald Appel
ARTICLE SYNOPSIS ...Increasing OBV reliability with stock index
by Gerald Appel
Traders have used volume pattern recognition techniques in an attempt to forecast price movement
probably for as long as records regarding trading volume have been maintained.
As a general rule, a market is considered bullish when it rises on increasing volume and declines on
decreasing volume, and bearish when it advances on lighter volume and declines on heavier volume.
Unfortunately, such rules are somewhat simplistic and subject to many exceptions. For example, a
situation where volume is diminishing as markets are advan...