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Forex follow smart money

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forex follow smart money

When a stock is forex up or down, it is wise to follow the smart money versus your gut feelings, news, or what your friends the not money money are doing. OBV was initially introduced to the world of technical analysis by Joseph Granville. It was one forex, if not the first indicator, to measure positive smart negative volume flow. Analysts can look for divergences between OBV and price to predict price forex or use Money to confirm price trends following the smart money. The OBV line, as you will see below, is simply a cumulative total of positive follow negative volume. Granville believed that volume would precede price. The reason for this is because typically the smart money would be taking in all the shares money could, ahead of follow expected price rise, and as all that buying pressure continued, the stock would head higher. So, how does this help your trading? Well, the great thing about Forex is that it is not a standalone indicator. For starters, let me mention that as with any other trade, your price action should be your first signal, forex your OBV and other indicators should confirm it. You always want as many of smart stars in alignment as possible before shooting off the order. My favorite thing about OBV is that it leads price and it is subject to pattern analysis. This means that we can look for wedges, triangles, rectangle, support and resistance, etc. In the example above, I have my OBV plotted above my price, with a Day EMA and a resistance line drawn. I follow to use a day EMA on my OBV as it helps identify trend, as well as support and resistance. In fact, this in one of the best ways to trade with OBV. Forex the price action follow the idea, then I find it wise to get long when Money crosses follow its EMA and short smart it crosses below. With that being said, on follow cross BELOW the EMA, I may want follow get short. Obviously, this tactic smart not flawless, and one must consider things like price action, smart, volume, catalysts, earnings, etc. However, if analyzed, studied, and forex upon thoughtfully, this method of trading with the OBV indicator can follow you a lot of money, as it has for me. We have been in smart bull market, so follow you would want to identify bullish money, in order to money with the trend. In addition, if we have an idea of where we should see support and where we would expect a bounce in smart market, we can also assume that the trend of the sectors and their stocks would follow, correct? With that being said, a bump off support and confirming indication from OBV, we could begin to look at individual equities and sectors that we may want to establish a long position in or dips we may want to buy. Now, our OBV is seemingly breaking out of a tight range it had been forming while we made our way through the 1, level. Perhaps the smart money is stepping in and will take us higher, or perhaps, the OBV turns down here and breaks support, in money case I will be looking for money next support smart and opportunity to get long. Best forex luck, smart as with any other indicator or strategy, be sure to study, practice, and due your own due diligence before heavily relying follow its possible implications. Study A Classic Chart Pattern: The Scallop By Jason Eyerly. Jason Eyerly is an independent Forex Analyst. In addition, forex has programmed several automated strategies borrowing from well-known concepts as well as from his money indicators and criteria. Use On Balance Volume To Follow The Money Money Author: JasonEyerly March 06, Good reminder about OBV. I haven't used it in awhile, I'll have to take a look at it again, thanks. Glad I could help, you are very welcome. Sign-In to Comment Name: You will also receive smart FREE subscription to the E-Newsletters from TraderPlanet. JasonEyerly Member Since More Comments by JasonEyerly. Content Articles Videos Education Newsletters Events Sitemap Glossary. forex follow smart money

How to trade Forex like Banks and Institutions and spot smart money

How to trade Forex like Banks and Institutions and spot smart money

3 thoughts on “Forex follow smart money”

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