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Trader Training - Free Educational Trading Articles:Practical Candlestick - OBV
A: A dark cloud cover pattern appears – a textbook example I might add! B: OBV forms its last peak and begins to confirm our candle pattern for a nice ride down.
A: Prices are trading in a long sideways extended range near a market top. Readers of our earlier magazine editions will recall the articles on “Distribution Zones”. B: The OBV as we described above was making lateral movement (albeit choppy). This was a very good sign that distribution was in fact occurring. And when distribution ends? Markets tank, yes.
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