Volume Indicators
Volume indicators in trading evaluate the performance and outcomes of trading strategies by analyzing trading volume to confirm trends or signal reversals. Here are some of the most commonly used volume indicators:
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Volume indicators are like the turbo boost in a business engine, supercharging performance and revealing the secret paths to peak productivity!
- On-Balance Volume (OBV): Tracks cumulative volume by adding or subtracting volume based on price direction, indicating buying or selling pressure.
- Chaikin Money Flow (CMF): Measures the flow of money into or out of an asset over a period, combining price and volume to assess accumulation or distribution.
- Volume Weighted Moving Average (VWMA): A moving average weighted by trading volume, giving greater emphasis to periods with higher volume.