Forex technical analysis indicators: OBV household income indicators are generally used.
- When the OBV line drops and the exchange rate rises, it indicates that the exchange rate is insufficient to increase energy, and the exchange rate may fall at any time, which is a signal to sell short.
- When the OBV line rises and the exchange rate falls slightly, it indicates that the market is booming, and the lower-grade acceptance is strong. The decline in the exchange rate is only a temporary technical callback, and the exchange rate may soon stop falling and rebound.
- When the OBV line rises slowly and the exchange rate also rises at the same time, it means that the market is steadily rising. The medium- and long-term investment situation in the foreign exchange market is still good, and the exchange rate still has room to rise. Investors should hold positions to rise.
- When the OBV line is slowing down and the exchange rate is falling simultaneously, it means that the market is gradually falling. The medium and long-term investment situation in the foreign exchange market is not good, and there is still room for the exchange rate to fall. Investors should mainly sell shorts or wait and see.
- Under normal circumstances, when the OBV line appears to rise rapidly, it indicates that most of the buying orders in the market have fully poured in, and the outbreak of the buyer’s energy cannot last for too long, and the market may appear to retrace. Investors Should consider selling on rallies. Especially shortly after the rapid rise of the OBV line, and when there is a zigzag curve on the disk and there are signs of turning around, it indicates that the market has been weak and the market is about to turn, which is a more obvious sell signal. This point is more accurate for the research and judgment of currencies that have risen in the short term and have risen significantly.
- Under normal circumstances, when the OBV line drops rapidly, it indicates that a lot of selling in the market is surging, the foreign exchange market has turned into a downward trend, and the price will enter a long period of decline. At this time, Investors should still focus on holding currencies and do not easily grab a rebound. Only when the OBV line has undergone a sharp decline and a jagged curve begins to form in the lower part, can we consider entering the market and making a short-term rebound.
- The high point of the OBV line after long-term accumulation (that is, the cumulative high point) often becomes a large resistance area for the market to rise again. The exchange rate often suffers strong upward pressure near this area and reverses and falls. Once the exchange rate breaks through this long-term resistance zone, its subsequent rally will be more powerful.
- After the long-term accumulation of the OBV line, the low point of the large band (that is, the cumulative low point) will often form a large support area for the decline in the market. The exchange rate will encounter strong downside support near this area and stop falling and stabilize. Once the exchange rate falls below this long-term support zone, the subsequent decline will be even more fierce.