- Stock Charts tecnical Analysis

Technical Analysis

SBV Flow (Selling/Buying Volume Flow)


Description

SBV Flow has been developed by MarketVolume.com's research team as a variation of the SBV Oscillator. The same as SBV Oscillator it is based on the Selling and Buying volume, however, since calculations are slightly different this indicator delivers different results. Even SBV Flow has an additional parameter "Sensetivity". it is considered easier to use when compared to the SBV Oscillator.

Technical Analysis

SBV Flow oscillates around 0 (zero) in the range from -100% to +100%. It could be used to analyze money flow (buying and selling volume pressure),  measure how strongly a stock is overbought or oversold, define trend and generate trading signals.

As with most indicators oscillating around zero center line, positive SBV Flow readings would indicate bullish sentiment and negative SBV flow readings would suggest negative sentiment. Furthermore, SBV Flow could be used in technical analysis in the same way the other oscillators are.

There are several simple points to keep in mind when analysis SBV Flow:

  1. Where SBV Flow is located? Is it above zero or below it?
    • Positive readings is an indication of Bullish volume dominance and bullish sentiment.
    • Negative readings is an indication of Bearish volume dominance and bearish sentiment.
  2. What is the SBV Flow direction? Is it declining or advancing?
    • Declining positive SBV Flow readings would suggest weakening of the bullish sentiment and the possibility of a reversal in the near future. Money flow is still positive but the Bears are increasing their pressure.
    • Declining and negative reading suggest strengthening of the bearish trend. The Bears are dominant and they are increasing their pressure.
    • Advancing negative SBV Flow readings would suggest weakening of the bearish sentiment and the possibility of a reversal in the near future. Money flow is still negative, yet, the Bulls becomes more active and they are increasing their pressure.
    • Advancing and positive reading suggest strengthening of the bullish trend. The Bulls are in charge and their pressure becomes stronger.
  3. When SBF Flow crosses center line on its way up, Bullish volume overcomes Bearish volume. Controversially, when zero line crossed on decline, bearish volume becomes dominant.
  4. How long SBV Flow moved in positive or negative area?
    The longer SBV flow moves in positive area, the stronger analyzed stock is overbought and the longer it is below zero line the stronger it is oversold. Respectfully, stronger oversold/overbought condition may result in stronger and more prolonged reversal.

Trading Signals

As was already mentioned above, SBV Flow is similar in technical analysis and signals generation to other indicators oscillating around zero center line. One of the simplest way to et trading signals would be:

Chart 1: SBV Flow and signals generated on the crossovers of the indicator and zero center line.

SBV Flow technical analysis


Stock Maps
Glossary
Disclaimer | Privacy © 2014 v-charts.com / All Rights Reserved. - SV1