Is OBV better than RSI?

A pretty great divergence indicator. By nature, OBV is great for divergence, running it through an RSI just makes those divergences that much more pronounce and even reveals some “hidden” divergence.

Is MACD or RSI better?

The MACD proves most effective in a widely swinging market, whereas the RSI usually tops out above the 70 level and bottoms out below 30. It usually forms these tops and bottoms before the underlying price chart. Being able to interpret their behaviour can make trading easier for a day trader.

How reliable is OBV?

OBV gives the most reliable feedback around tests of major highs and lows, making it a perfect tool to measure the potential for breakouts and breakdowns. It’s a simple process, comparing the indicator’s progress to price action and noting convergence or divergence relationships.

What is RSI MACD?

RSI vs. MACD. The RSI and MACD are both trend-following momentum indicators that show the relationship between two moving averages of a security’s price. The MACD measures the relationship between two EMAs, while the RSI measures price change in relation to recent price highs and lows.

When should you buy MACD?

At its most basic level, MACD generates four signals: Buy: When the MACD line crosses above the zero line, it’s bullish. Buy: When the MACD line crosses above the nine-day signal line, it’s bullish. Sell: When the MACD line crosses below the zero line, it’s bearish.

What is the best period for MACD?

The periods used to calculate the MACD can be easily customized to fit any strategy, but traders will commonly rely on the default settings of 12- and 26-day periods. A positive MACD value, created when the short-term average is above the longer-term average, is used to signal increasing upward momentum.

What time frame is OBV?

Though traders use different OBV time periods for different stocks, a reasonable time frame would be 1-3 years for its use.

What is a high OBV?

OBV falls when volume on down days is stronger. A rising OBV reflects positive volume pressure that can lead to higher prices. Conversely, falling OBV reflects negative volume pressure that can foreshadow lower prices. Granville noted in his research that OBV would often move before price.