The on Balance Volume (OBV) Indicator

question 16

Multiple Choice

The on balance volume (OBV) indicator

• A) indicates a market bottom when prices and volume are both falling.
• B) is optimistic when prices are rising on low volume.
• C) is optimistic when prices are rising on high volume.
• D) is neutral whenever prices and volume move in opposite directions.

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Definitions:

Consumption

The employment of goods and services within home environments.

Income

Monetary payment received for work or through investments.

Interest Rate

The fraction of a loan that incurs interest costs for the borrower, usually described as an annual percentage rate.

Utility Function

A mathematical representation of how a consumer's satisfaction or preference for goods and services is dependent on their consumption levels.