The King's Trader Education

 


Trader Training - Free Educational Trading Articles:

Practical Candlestick - OBV

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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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"It takes a man a long time to learn all the lessons of all of his mistakes. They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side. It took me longer to get that general principle fixed firmly in my mind than it did most of the more technical phases of the game of stock speculation" ----from REMINISCENCES OF A STOCK OPERATOR