what is on balance volume in forex trading?

What is On Balance Volume in Forex Trading?

Kise he ap sab log aj is thread me apko me Pakistan forex trading ke ak bhot he important topic On Balance Volume ki importance ke bare me btao ga or me Umeed karta ho ke jo information me apse share karo ga wo apke knowledge or experience me zaror izafa kare ge or agar ap mere is thread pe amal karte He to ap ak kamyab trader ban sakte he . What is On Balance Volume? On balance volume ( OBV ) aik takneeki trading momentum indicator hai jo stak ki qeemat mein tabdeelion ka andaza laganay ke liye hajam ke bahao ka istemaal karta hai. joseph granville ne pehli baar 1963 ki kitaab granville' s new key to stock market profits mein obv metric tayyar kya. graan veil ka khayaal tha ke hajam marketon ke peechay kaleedi qowat hai aur obv ko is mansoobay ke liye design kya gaya jab marketon mein barri tabdeelian hajam ki tabdeelion ki bunyaad par hon gi. apni kitaab mein, is ne obv ki taraf se peda honay wali pishin goyyon ko" aik bahhar mazbooti se zakham honay" ke tor par bayan kya. is ka khayaal tha ke jab stock ki qeemat mein numaya tabdeeli ke baghair hajam mein taizi se izafah hota hai, to qeemat bil akhir oopar ki taraf barh jaye gi ya neechay gir jaye gi . Key Features On balance volume ( OBV ) raftaar ka aik takneeki isharay hai, qeemat ki paish goyyan karne ke liye hajam mein tabdeeli ka istemaal karta hai. obv hajhoom ke jazbaat ko zahir karta hai jo taizi ya mandi ke nateejay ki paish goi kar sakta hai. qeemat ki salakhon aur obv ke darmiyan nisbati karwai ka mawazna sabz se ziyada qabil amal signal peda karta hai. ya surkh volume histogram aam tor par qeemat chart ke neechay paye jatay hain . Understanding OBV ke peechay nazriya smart money - yani idaara jati sarmaya karon - aur kam nafees khorda sarmaya karon ke darmiyan farq par mabni hai. jaisay hi myochl funds aur pension funds is maslay mein khareedna shuru kar dete hain jisay khorda sarmaya car farokht kar rahay hain, hajam mein izafah ho sakta hai yahan tak ke qeemat nisbatan satah par rehti hai. aakhir-kaar, hajam qeemat ko oopar ki taraf le jata hai. is waqt, barray sarmaya car farokht karna shuru kar dete hain, aur chhootey sarmaya car khareedna shuru kar dete hain. qeemat ke chart par plot kiye jane aur adadi tor par naapa jane ke bawajood, obv ki asal infiradi miqdari qader mutaliqa nahi hai. isharay bazat khud majmoi hai, jabkay waqt ka waqfa aik waqf shuda nuqta aaghaz ke zariye tay hota hai, yani obv ki haqeeqi tadaad ki qader mann maani tor par shuru ki tareekh par munhasir hoti hai. is ke bajaye, tajir aur tajzia car waqt ke sath sath obv ki naqal o harkat ki noiyat ko dekhte hain. obv line ki dhalwan tajzia ka sara wazan rakhti hai .

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On-Balance Volume (OBV)

On Balance Volume (OBV) indicator Meta Trader terminal ke standard algorithms mein shamil hai, is liye ye is program ke tamam istemal karne wale users ke liye dastiyab hai. Ye tool market ke balance volume ko determine karne ke liye banaya gaya hai. Ye ek dynamic algorithm hai jo trading asset ki price aur total market volumes ke mutabiq apne readings ko barabar badalta rehta hai.
On Balance Volume trend indicator ko 1963 mein mashhoor trading theorist aur practitioner Joseph Granville ne apne kitab "New Strategy on the Stock Market" mein introduce kiya tha, lekin aaj bhi ye indicator maqbool aur aham hai.
On Balance Volume indicator banate waqt Granville ne ye maan kar kaam kiya ke financial markets ki driving force volume hai, aur volume parameters ko strategies banane ke liye istemal kiya ja sakta hai.
Khaas taur par, Granville ne notice kiya ke jab volume tezi se badhta hai ya ghat ta hai, toh jald hi ek asset ki price mein tabdili hone wali hai. Ye is liye hota hai kyun ke bade players volume purchases karte hain jabke chhote players sell karte hain. Jab bade players ne sufficient "buy up" kar liya hota hai, toh wo price ko new heights par le jaate hain.



On Balance Volume formula simple hai aur ise bahut si sources mein cite kiya gaya hai:

• Agar, maslan, aaj ka closing price kal ke closing price se zyada hai, to OBV kal ke OBV aur us period ke volume ka sum hota hai: OBV i = OBV i-1 + Volume i;
• Agar aaj ka closing price kal ke closing price se kam hai, to OBV kal ke OBV se us period ke volume ka farq hota hai: OBV i = OBV i-1 - Volume i;
• Agar kal ke aur aaj ke closing prices barabar hain, to OBV kal ke OBV ke barabar hota hai: OBV i = OBV i-1.

Jahan:

• OBV i - On Balance Volume for the current period;
• OBV i-1 - On Balance Volume during the previous period;
• VOLUME i - the volume of the current candle.

Indicator ka key feature ye hai ke ye sirf trading volumes ke sath operate karta hai, aur prices ke sath nahi. Prices On Balance Volume ke liye sirf ek additional parameter hain. Graphically, ye indicator ek curve ki tarah dikhta hai jo trading volume ki accumulation ki dynamics ko dikhata hai.
OBV calculation mein averaging nahi hoti, isliye iske values price ke sath synchronous hote hain aur price se pehle aa sakte hain. On Balance Volume indicator ko main market trend aur trend reversals ke anticipatory determination ke liye istemal kiya jata hai.
Ye kaafi simple indicator hai, aur terminals mein iska ek hi set parameter hota hai - period prices, jese ke closing ya opening prices, extrema, aur median prices. Ise sab se effective taur par use karne ka khayal hai hourly timeframes, 4-hour, daily, aur weekly timeframes par.

On-Balance Volume (OBV) Indicator Reading & Application

Volume indicators ka istemal forex trading mein mushkil paida karta hai. Ye indicators stock exchange ke liye banaye gaye the, jahan aap traded asset ka volume dekh sakte hain. Forex mein aap ye nahi dekh sakte ke kaunsi currency trading ke doran kharidi ya bechi ja rahi hai. Volume indicators trades ke volume ko determine karne ke liye zaroori hain, lekin ye aapko direction ke bare mein kuch nahi batayenge.
Indicator signals ki interpretation khud mein kafi clear nahi hoti, lekin forex trading ke liye kuch interpretation rules hain. Agar notice hota hai ke trading volumes kam ho rahe hain, to ye matlab hai ke pair mein interest kam ho raha hai, aur ye ya to trend change ko ishara kar sakta hai ya phir price stabilization ko. Ulta, agar trading operations ke volume badh raha hai, toh samajh sakte hain ke asset mein interest badh raha hai, aur ye ya to trend ko strengthen hone ka ishara kar sakta hai ya phir reversal.
Agar trading volume ek lambi muddat tak dheere dheere kam hota hai, toh hum ek tez price change ka intezar kar sakte hain. Agar indicator charts par peaks dikhein toh jald hi ek trend reversal ki umeed hai.
Ye kaafi fuzzy signals hain jo bohot broadly interpret kiye ja sakte hain. Is liye aise tools ko additional indicators ke sath use kia jata hai. OBV indicator kai types ke signals de sakta hai. Agar OBV indicator extremums ko consistently main trend ke mutabiq update karta hai, toh trend continue hoga.
Agar price OBV extremums ko tezi se update karta hai toh iska matlab hai ke ye volumes ke growth ke sath confirm nahi hai aur ye apne pehle ke values par wapas jane ka ishara karta hai. Agar price extremums ko update karta hai lekin OBV nahi, toh ye ishara hai ke trend kamzor ho raha hai aur hume reversal ka intezar karna chahiye. Bohot se traders ka khayal hai ke haqeeqatan mein, On Balance Volume indicator sirf ek meaningful signal deta hai - specifically trend reversal ke liye.
Indicator aur price dynamics ke beech ki discrepancies ko divergences kehte hain. OBV indicator bullish aur bearish divergences dikha sakta hai. A bullish divergence signal hai jab agla peak pehle se zyada hai, lekin price chart next peak pehle se kam hai. A bearish divergence signal hai jab indicator agle peak ko pehle se kam dikha raha hai, lekin price chart next peak pehle se zyada hai.
Jab trading volume mein ek sudden change hoti hai, toh OBV indicator par usko ek tezi ya girawat ki line ke roop mein darust kiya jata hai. Agar ek tezi se price increase ke baad ya ek tezi se price decrease ke baad local high ya local low par ek sudden change hota hai, toh ye trend reversal ka signal hota hai. Reversal ko additional OBV signal ke sath confirm kiya jata hai jo same direction mein hota hai. Behtareen hai ke agar aise signals important resistance aur support levels par dikhai dete hain, toh inko trade mein istemal kiya ja sakta hai.
Agar indicator ek "corridor" mein peaks aur troughs ke bina lambi muddat tak move karta hai, toh ye trend ki uncertainty ko dikhata hai. Ye uptrend ya downtrend ke change hone par khatam hota hai, is moment ko breakout kehte hain.
Uptrend ko uptrend hi consider kiya jata hai agar uptrend indefinitely change hota hai aur do periods ke liye aisa rehta hai, phir wapas uptrend mein laut kar rehta hai.
Kisi bhi halat mein, OBV indicator aksar false signals generate karta hai, is liye humein kuch periods ke confirmation ka intezar karna chahiye jab indicator move karta hai ya nahi. Jab breakout hota hai, toh buy ka signal indicator ka reversal upwards hota hai, aur sell ka signal indicator ka reversal downwards hota hai.
Mana jata hai ke OBV signals par position open karte waqt trend complete change hone tak rakhna chahiye. Agar OVB indicator saaf signals deta hai, toh sirf un par bharosa karke positions open karna bhi bohot sahi nahi hai. Optimal yeh hai ke OVB ko trend ki strength ya weakness ko confirm karne aur reversal dekhne ke liye istemal kiya jaye. Baaki sab kuch dusre indicators aur oscillators ke sath kiya jata hai. Iske alawa, prakti mein sabit hai ke On Balance Volume ko behtar taur par daily charts par apply kiya ja sakta hai.

On Balance Volume Trading Strategies

On Balance Volume ka ek example RSI indicator ke sath flat movement ke strategy mein hai. Relative Strength Index (RSI) momentum dikhata hai, yaani ke price change ki tezi aur lambai ko dikhata hai, trend ki strength aur reversal ke probabilities ko batata hai.
Is strategy mein, OBV indicator ko support aur resistance lines pehchanne ke liye istemal kiya jata hai, jab flat khatam hota hai aur ek naya trend ban raha hai. Jab OBV sahi signal deta hai, toh positions RSI indicator overbought/oversold zones se bahar nikalte waqt khuli jaati hain, naye trend ki taraf. Is tarah, uptrend par long positions aur downtrend par short positions khuli jaati hain.
Flat movement ke doran hi ye strategy implement ki jati hai, jisme OBV indicator ko Stochastic ke sath complement kiya jata hai. Flat trend ko volume indicator se set kiya jata hai, price ke ek overbought ya oversold area mein hone ka moment Stochastic ke standard settings ke sath decide kiya jata hai. Ye system low-volatility assets par optimal taur par kaam karta hai.
Sab se aam istemal hone wala strategy hai On Balance Volume ko Simple Moving Average ke sath combine karna. Chart par volume lagaya jata hai, phir MA, jese ke 120 period ke sath. MA saaf aur clear signals deta hai, agar ye upwards direction mein hai toh market buyers dominate kar rahe hain, aur agar ye downwards direction mein hai toh market sellers dominate kar rahe hain.
OBV indicator signals ko clarify karne aur orders ko confident taur par open karne ke liye istemal hota hai. Is tarah, buy ka signal hoga jab On Balance Volume line Moving Average ko bottom se top ki taraf cross karegi. Ulti, sell ka signal hoga jab volume indicator Moving Average ko top se bottom ki taraf cross karegi. Is strategy mein kisi aur indicator ko add kiya ja sakta hai jo orders place karne ke liye confirmation signals de.
Yehi approach dusre trend indicators jese ke CCI ke sath bhi istemal kiya jata hai. OBV aur dusre volume indicators ke sath combine kar ke market situation ko precise taur par analyze karne mein madad milta hai, aur is se orders ko effective taur par place kiya ja sakta hai. For example, ek strategy hai jo OBV aur A/D (Accumulation/Distribution) indicator ka istemal karti hai.
Kuch traders kehte hain ke On Balance Volume ko paradoxical trading ke liye use kiya ja sakta hai, jisme koi abnormal indicator reading note kiya gaya ho. Ye most traders ki mistakes ka indicator hai aur trend reversal ko indicate kar sakta hai. Is strategy ke terms ke mutabiq, aise anomaly ko trade ke liye ek signal samjha jata hai jo trend ke khilaf jaane ka ishara karta hai.

Conclusion

On Balance Volume indicator ek simple lekin kaafi informative aur useful tool hai jo market mein ho rahe events ko clear picture dene mein madad karta hai. Is indicator ka trading ke liye sab se bada faida ye hai ke ye anticipatory signals generate kar sakta hai jo ke dusre indicators ke sath combine kar ke trading systems banane mein istemal kiye ja sakte hain.
Ek signal provider ke tor par, ye indicator medium aur long-term time frames par trading karte waqt sabse zyada effective hai. Lekin iske saath kaam karna mushkil ho sakta hai aur agar kiya jata hai, toh kuch traders suggest karte hain ke do alag indicators aur time frames ke sath do alag screens par strategy implement ki jaye. Nuksan yeh hai ke ye indicator stock market ke liye banaya gaya tha, isliye forex trading ke doran ye bohot se false signals generate kar sakta hai.
Aksar traders ke liye mushkil hota hai samajhna ke is indicator ke numerical values ka koi practical value nahi hota, aur humein curve ke behavior par dhyan dena chahiye. Overall, ye ek bahut hi useful tool hai jo market ke bare mein sochne ke liye information deta hai, lekin iske sath trade karne ke liye nahi.