On Balance Volume (OBV) is a simple indicator that measures buying and selling pressure. Volume is added on up days and subtracted on down days. Even though the Dow Transports is holding above its June low, OBV sank to new lows and shows selling pressure.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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