To determine trend changes, one of my favorite tools is the multiple time frame analysis of the on balance volume that I discussed in a recent trading lesson.
Bogle told the audience that traditional security analysis was about the balance sheet first and earnings second.
The RS analysis was confirmed by the on-balance volume, as it overcame the key resistance, line e, in early April.
An understanding of this requires a precise analysis of the balance of power.
Often times, weekly RSI divergences will confirm signals from other technical tools like the on-balance volume (OBV), which gives even greater validation to the analysis.
Reflecting his analysis of the U.S. balance of payments deficit, Levy owns a large position in the euro.
Of course, the monthly analysis of relative performance and on-balance volume (OBV) can be combined with Starc band analysis to identify new opportunities.
On balance this gets considerably more data points into the analysis.
In the second phase, on-balance-volume and relative performance analysis play a primary role, though other technical tools are often also used.
However, I have found that combining this scan with the monthly analysis of the chart, relative performance, and on-balance volume can be quite effective in identifying good buying opportunities.
It should be noted that even if the December lows were broken, the long-term positive action of the on-balance volume (OBV) indicator would still keep my long-term trend analysis positive.
He added that it was important to balance analysis with chronology, as students needed to understand concepts such as time and the past.
The volume analysis supports this viewpoint, as it confirmed the recent breakout and the weekly on-balance volume (OBV) has continued to make new highs with prices.
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