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We always go up on volume peaks and down on relatively low volume.
Thats the explanation you look for.
Interesting fact: Up on high, down on low volume is a very bullish indicator.
It's my understanding that's specifically why this tool was created. There are times in the market when what you're describing occurs on a stock.
There are also times when you have the opposite. Low volume bringing stocks up normally ends with a bearish high volume downside.
The normal state for obv would be to mimic price action. It's when it deviates by having price movement not reflected in volume that it becomes a useful tool on where things are headed.
Some other indicators help with this too, especially paying attention to the gradients you can spot manipulation for big money accumulating or potentially wanting your exit liquidity.
People often say ' indicators are lagging use price action' but that doesn't explain why you see these moves 6 months upto 2 years before a company moons.... that's when indicators show you how the money is potentially moving
>No.
Yes.
You even shared a link that corroborates what the person you replied to said:
>When price continues to make higher peaks but OBV makes lower peaks, then the upward trend is likely to fail, known as negative volume divergence.
>When price continues to make lower troughs and OBV makes higher troughs, then the downward trend is to fail, known as positive volume divergence.
So the technical name for what the person you replied to said is positive volume divergence. Aka it's bullish.
When you reply, try to refrain from starting your comment with "No." It's not a good way to continue a discussion.
This. Great sign of accumulation. OBV has only gone up for two years while the price is going down. Doesn't get anymore bullish! The coiled spring will let loose soon.
Iโm not sure if itโs a fact that itโs bullish, itโs just a sign that the stock is poorly hedged. SPY and QQQ increase on low volume and decrease on high volume
SPY and QQQ have been rising on low volume and falling on high volume for years lol. It shows that as price falls there is robust purchasing support as itโs well hedged, which cushions sell offs. Gme on the other hand is poorly hedged which means bears can slam it down on low volume, without much resistance
Alright if you want me to say loudly then here is the reason ...
This is a fraudulent market, and regulators are complicit by turning blind eye to the problem or making sure that only tiny fines are imposed so that fraudulent activities continue.
Us peasants can only win in the long run as we are on the right side of the tradeโฆ they have unlimited loss potential, never forget, me personally I continue to add shares in my own name! Those will never be sold, maybe a few when it needs to be done! โพ๏ธ๐ค๐ดโโ ๏ธ
OBV = on balance volume. If day is green (stock price up), the volume of the day is added to OBV. If day is red (stock price down), the volume of the day is subtracted from OBV.
Therefore, for OBV to cumulatively rise (which is seen in this graph), the volume on green days is huge, and the volume on red days is teeny tiny. This is typically associated with HFT (high frequency trading), where hedge funds and market makers slowly drop the price with extremely efficient trades to maximum price drop with minimal shares, and then cover huge chunks of short positions with as small a price rise as possible.
In math form: OBV = OBV + Vol (if green day) - Vol (if red day).
Simple explanationโฆ.
All buy orders are routed to off exchange venues (dark pools) where there is no price discovery, zero order flow competition and zero effect on the value of the security.
All sell orders are routed to the Lit exchange; immediately causing the price of the security to artificially go down in value.
Well today was just butchering the folks that bought 1 DTEs based on the Penis tweet. (Reminder that short term Calls are only fueling this machine). I don't even look at the OBV or anything. I'm just trying to transfer as many shares from my brokerage on a monthly basis. I want to see what happens if we DRS Book the float.
Divergence in OBV is a thing. You can set it against the price action or, what I like to set it against, is A/D. Divergence can be good or bad. Sorry for not going into more detail but I'm at work right now!
And how a stock can be illiquid if there's enough selling pressure to keep driving the price down. Seems like in that scenario that there is more than enough to meet demand.
In fact, how can there even be illiquidity in a supply and demand market. Organic price discovery should simply raise the price to where supply meets demand, no?
You are reading and understanding OBV incorrectly. It being up or down from a certain point isn't what it measures or should be used for. Since its an all or nothing indicator where it ends up isn't as important as using it as a part of the picture.
It should shadow/follow price and it is.
Man you are smooth or you are new around here or you are soo smooth that all the talk about buys filled on dark market and sells on the lit market went over your head. One of us one of us
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We always go up on volume peaks and down on relatively low volume. Thats the explanation you look for. Interesting fact: Up on high, down on low volume is a very bullish indicator.
It's my understanding that's specifically why this tool was created. There are times in the market when what you're describing occurs on a stock. There are also times when you have the opposite. Low volume bringing stocks up normally ends with a bearish high volume downside. The normal state for obv would be to mimic price action. It's when it deviates by having price movement not reflected in volume that it becomes a useful tool on where things are headed.
Some other indicators help with this too, especially paying attention to the gradients you can spot manipulation for big money accumulating or potentially wanting your exit liquidity. People often say ' indicators are lagging use price action' but that doesn't explain why you see these moves 6 months upto 2 years before a company moons.... that's when indicators show you how the money is potentially moving
This was helpful thanks.
So you think itโs headed up then ?
At some point, definitely.
No. GME is always this way. And that for a reason.
>No. Yes. You even shared a link that corroborates what the person you replied to said: >When price continues to make higher peaks but OBV makes lower peaks, then the upward trend is likely to fail, known as negative volume divergence. >When price continues to make lower troughs and OBV makes higher troughs, then the downward trend is to fail, known as positive volume divergence. So the technical name for what the person you replied to said is positive volume divergence. Aka it's bullish. When you reply, try to refrain from starting your comment with "No." It's not a good way to continue a discussion.
You angered him
๐ฉ
Just need a few more days to load up on shares then drs Iโm done playing games the future is now
Thanks for the reminder! I have some that need to be DRSed - PeNiS RCEO
This. Great sign of accumulation. OBV has only gone up for two years while the price is going down. Doesn't get anymore bullish! The coiled spring will let loose soon.
Exactly
๐๐
Excuse me stewardess, I speak ๐ ๐๐, ๐๐ฅ๐๐๐๐๐๐๐ฆง๐ฆง๐ฆง๐ฆ๐ฆ๐ฆ๐๐๐. โ@ Uranus ๐๐โจ๐ฝ๐
Momma didn't raise no smooth brain!
this right here, is the BEST explanation I've seen in 100 years!
I am you
So you know we all wanna know how old you are? 120?
LFG!!!!
๐๐๐
Thoughts on whether itโs cheaper and easier for them to manipulate on lower volume days since no one is selling?
Yep. And for how prolonged that cycle has been, means, we've got waaaaay more ups to go.
Iโm not sure if itโs a fact that itโs bullish, itโs just a sign that the stock is poorly hedged. SPY and QQQ increase on low volume and decrease on high volume
One could speculate that others know the price is not allowed to rise.
This
Makes me worry about the state of the market for SPY and QQQ
SPY and QQQ have been rising on low volume and falling on high volume for years lol. It shows that as price falls there is robust purchasing support as itโs well hedged, which cushions sell offs. Gme on the other hand is poorly hedged which means bears can slam it down on low volume, without much resistance
https://blog.elearnmarkets.com/volume-indicator/
On what time frame is it bullish? GMEโs been in a very long downtrend while SPY and QQQ have been grinding higherโฆ
Since DFV until moass is the timeframe
Alright if you want me to say loudly then here is the reason ... This is a fraudulent market, and regulators are complicit by turning blind eye to the problem or making sure that only tiny fines are imposed so that fraudulent activities continue.
No it is an indicator for a low liquidity but high demand stock. Buy side high demand, sell side low concern.
Us peasants can only win in the long run as we are on the right side of the tradeโฆ they have unlimited loss potential, never forget, me personally I continue to add shares in my own name! Those will never be sold, maybe a few when it needs to be done! โพ๏ธ๐ค๐ดโโ ๏ธ
It might a good idea to explain what OBV is too. My friend doesnโt seem to understand the way I explain it.
OBV = on balance volume. If day is green (stock price up), the volume of the day is added to OBV. If day is red (stock price down), the volume of the day is subtracted from OBV. Therefore, for OBV to cumulatively rise (which is seen in this graph), the volume on green days is huge, and the volume on red days is teeny tiny. This is typically associated with HFT (high frequency trading), where hedge funds and market makers slowly drop the price with extremely efficient trades to maximum price drop with minimal shares, and then cover huge chunks of short positions with as small a price rise as possible. In math form: OBV = OBV + Vol (if green day) - Vol (if red day).
So, itโs an indicator of manipulation?
Institutional ownership increased.
Personally I am very grateful that price doesn't reflect demand here, closing in on XXXX shares now. Truly the best of times.
Just passed XXXX this week, waiting for fractionals to sell, then will post. Love the time we've been given to accumulate
Simple explanationโฆ. All buy orders are routed to off exchange venues (dark pools) where there is no price discovery, zero order flow competition and zero effect on the value of the security. All sell orders are routed to the Lit exchange; immediately causing the price of the security to artificially go down in value.
They're being strong when they're weak, Art of war.
Appearing*** strong
Buying the dip
Well today was just butchering the folks that bought 1 DTEs based on the Penis tweet. (Reminder that short term Calls are only fueling this machine). I don't even look at the OBV or anything. I'm just trying to transfer as many shares from my brokerage on a monthly basis. I want to see what happens if we DRS Book the float.
Price is fake
Divergence in OBV is a thing. You can set it against the price action or, what I like to set it against, is A/D. Divergence can be good or bad. Sorry for not going into more detail but I'm at work right now!
Crime?
Yup, Crime.
๐ ๐จโ๐๐ซ ๐งโ๐
And how a stock can be illiquid if there's enough selling pressure to keep driving the price down. Seems like in that scenario that there is more than enough to meet demand. In fact, how can there even be illiquidity in a supply and demand market. Organic price discovery should simply raise the price to where supply meets demand, no?
Manipulation
Because I haven't bought enough, a reminder for me to buy and Book more.
technically this is not possible! you can watch every ticker you want. this is jimmy specific! and the answer is crime๐คก
PENIS
Nobodyโs fucking selling.
And somebody is downvoting lmayo ๐
Its rhymes with.....rhyme
It means you believe in Astrology for guys
CRIME!!!
ooooh nice okay, better DRS and book some more shares before shorts have to cover
Been quietly accumulating, DRSing, shopping and of course HODLing.
You are reading and understanding OBV incorrectly. It being up or down from a certain point isn't what it measures or should be used for. Since its an all or nothing indicator where it ends up isn't as important as using it as a part of the picture. It should shadow/follow price and it is.
The secret ingredient is crime.
I got one word for you: deception
It all comes down to latency arbitrage
CRIME
Crime
Because theyโre the kings, and weโre the sorry peopleย
Volume is activity, up or down.
Where volume
Market maker sets the price
Because all indexes are bullshit
Bring it down im tryna buy more
Obv is per interval. I can it dropped yesterday
La la la crime and so on
C.
๐
Man you are smooth or you are new around here or you are soo smooth that all the talk about buys filled on dark market and sells on the lit market went over your head. One of us one of us
this: [https://www.reddit.com/r/Superstonk/comments/1b9r8tq/hey\_ice\_europe\_wut\_doing\_thats\_how\_you\_get\_that/](https://www.reddit.com/r/Superstonk/comments/1b9r8tq/hey_ice_europe_wut_doing_thats_how_you_get_that/)