On Balance Volume one of technical indicator use _____ as base.
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A. B. C. D.C
On Balance Volume (OBV) is a technical indicator that uses trading volume to predict changes in the price of a security. It was developed by Joseph Granville in the 1960s and is based on the idea that changes in volume precede changes in price.
OBV uses the cumulative total of volume to create a line that either follows or diverges from the price of the security being analyzed. The OBV line is created by adding volume on up days and subtracting volume on down days. If the price of the security closes higher than the previous day's close, the volume is added to the OBV line. If the price closes lower than the previous day's close, the volume is subtracted from the OBV line.
The OBV line can be used to confirm trends and identify potential reversals. If the OBV line is rising along with the price of the security, this suggests that demand for the security is increasing. Conversely, if the OBV line is falling while the price is rising, this indicates that there is selling pressure and the trend may not be sustainable.
To answer the question, the base that OBV uses is volume. Therefore, the correct answer is C. Volume. The OBV line is based on the cumulative total of volume traded over a given period, and changes in the OBV line are used to identify trends and potential reversals in the price of the security being analyzed.