Anyone here use the OBV and ADL indicator together?

Trading Discussion
1

Hi all,

I was wondering if anyone uses the OBV and ADL indicator together in the same pan.

I’m curious to learn the type of strategy that can be used when combining the two together ?

Question part is when the two start to diverge such as the ADL is ranging/increasing while the OBV is falling… Trying to understand this type of divergence its led me without much progress about it.

Generally when the ADL is increasing its a sign of accumulation but if the OBV is falling it’s a sign of distribution. If your using the two together isn’t it a bit contradictory when it starts to diverge like that?

Here is a chart of the divergence of the two indicators. https://www.tradingview.com/x/inNl4d3g/

OBV line is blue ADL line is yellow

Rules:

  1. When there is a divergence between the ADL and OBV wuch as the ADL increasing and the OBV decreasing is this a sign of a down trend of the currency?

  2. When the OBV increases above the ADL does it mean the currency is in an uptrend ?

  3. When you notice divergences with price and the ADL/OBV it’s generally a sign of accumulation or distribution depending on the direction of the price. (This parts straight foreward for me).

Just not to sure about rule No.1

ADL - Accumulation Distribution Line OBV - On Balance Volume

Hopefully I can get some clarification

Thanks in advance

1 Like
2

Hey buddy, did you get the answer you were looking for?

3

One thing you can try is putting on the crosshairs I believe it’s ctrl-f, and just scroll along noting how price performs and how the indicators are behaving