Search results
Results from the WOW.Com Content Network
An open-high-low-close chart (OHLC) is a type of chart typically used in technical analysis to illustrate movements in the price of a financial instrument over time. Each vertical line on the chart shows the price range (the highest and lowest prices) over one unit of time, e.g., one day or one hour.
Rather than using the open, high, low, and close values for a given time interval, candlesticks can also be constructed using the open, high, low, and close of a specified volume range (for example, 1,000; 100,000; 1 million shares per candlestick).
A higher close results in the volume for that day to get a positive value, while a lower close results in negative value. [3] So, when prices are going up, OBV should be going up too, and when prices make a new rally high, then OBV should too. If OBV fails to go past its previous rally high, then this is a negative divergence, suggesting a weak ...
When the price is breaking away on a low volume, there is a possibility that the gap will be filled before prices resume their trend. Common gap – also known as an area gap , pattern gap , or temporary gap , tend to occur when trading is bound between support and resistance level on a short span of time and market price is moving sideways ...
Volume is also a useful metric for determining the liquidity of an asset. [6] Liquidity is a measure of how easily an asset can be bought or sold without dramatically affecting the asset's price. Therefore, a market for a security in which there are many buyers and sellers would feature a large volume and thus high liquidity. [5] [6]
Heikin-Ashi Low=Min value (Low-0, Open-0, and Close-0) [8] (where -0 indicates that values are being taken from the current bar or period). The main purpose of a Heikin-Ashi chart is to show the general trend of the price (direction of price) and the strength of each trend; [ 10 ] these are represented by the wicks: small lines that extend from ...
Get AOL Mail for FREE! Manage your email like never before with travel, photo & document views. Personalize your inbox with themes & tabs. You've Got Mail!
Ease of movement (EMV) [1] is an indicator used in technical analysis to relate an asset's price change to its volume.Ease of Movement was developed by Richard W. Arms, Jr. and highlights the relationship between volume and price changes and is particularly useful for assessing the strength of a trend.