Today we have a very useful information about the potential trend reverse anticipation and trend's strength measurement. On-balance  volume (OBV) is one of the most powerful indicator for these purposes. The rising OBV means that the bulls control the market, falling OBV means the  bearish pressure, OBV on the sideways means the equal strength of the bulls and bears. 

Here are 9 combinations of the price action and the OBV which can help you to forecast the future trend:

  1. Price Uptrend + OBV Uptrend  It means that the uptrend is strong and confirmed by the  volume . There is a high probability of the uptrend continuation.  

  2. Price Uptrend + OBV Sideways  The uptrend is not so strong as in the previous point, but bears are not so strong to reverse it. 

  3. Price Uptrend + OBV Downtrend  There is a sign of the potential reverse to the downtrend, be careful. 

  4. Price Downtrend + OBV Uptrend  There is a sign of the potential price trend reverse from downtrend to uptrend. 

  5. Price Downtrend + OBV Sideways  Here is the sign of weakness of the uptrend, but the bulls still have not enough power to reverse the trend.  

  6. Price Downtrend + OBV Downtrend  It means that the downtrend is strong and there is no potential reverse anticipated.  

  7. Price Sideways + OBV Uptrend  Bulls accumulates the power to reverse the sideways to the uptrend. This is the  bullish sign. 

  8. Price Sideways + OBV Sideways  This is indefinite situation. Trade execution is not recommended. 

  9. Price Sideways + OBV Downtrend  Here is the sign of the potential downtrend beginning. 

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