Indicators & Oscillators
4 terms
On-Balance Volume
Indicators & Oscillators
shares
A running total that adds a period's volume when the close rises and subtracts it when the close falls.
OBV = Previous OBV + Volume if Close > Previous Close; - Volume if Close < Previous Close; unchanged if equal
Oscillator
Indicators & Oscillators
qualitative
An indicator that moves within a bounded range, used to describe the pace of price change rather than its direction.
Test: the indicator's output is confined between fixed limits, such as 0 to 100 or -100 to +100
Overbought
Indicators & Oscillators
qualitative
A description of an oscillator reading above a conventional upper threshold, such as RSI above 70.
Test: oscillator value exceeds its conventional upper threshold, typically 70 for RSI or 80 for stochastics
Oversold
Indicators & Oscillators
qualitative
A description of an oscillator reading below a conventional lower threshold, such as RSI below 30.
Test: oscillator value falls below its conventional lower threshold, typically 30 for RSI or 20 for stochastics