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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.
This ranges from -1 when the close is the low of the day, to +1 when it's the high. For instance if the close is 3/4 the way up the range then CLV is +0.5.
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 ...
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]
This means for example that if the S&P 500 closed the day before at 1150 (16:15 EST) and opens today at 1160 (09:30 EST), they will short the market expecting this "upgap" to close. A "downgap" would mean today opens at, for example, 1140, and the speculator buys the market at the open expecting the "downgap to close". The probability of this ...
In technical analysis in finance, a technical indicator is a mathematical calculation based on historic price, volume, or (in the case of futures contracts) open interest information that aims to forecast financial market direction. [1]
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.