Practical Education: Detecting Accumulation with the OBV Indicator (On-Balance Volume)
The OBV is an indicator that uses volume to predict price changes. One of the strongest strategies is to look for "divergences". If the price of an asset is making new lows, but the OBV is starting to rise or move sideways, this may mean that the "smart money" is discreetly accumulating the asset, anticipating a rise. It is a sign of strength that the price alone does not show.
Optimized CTA: Add the OBV indicator to the $LINK chart. Look for divergences between the price and the indicator to try to anticipate a possible reversal.