We are in the process of changing "Buying Volume" and "Selling Volume" terms in our market outlook and our tutorial. The previously accepted terminology confuses many of our subscribers and we are constantly receiving questions about it. To make it easier to learn, from now on we will use the simplified, commonly used terminology. We will continue using the SBV oscillator as "Selling Buying Volume Oscillator" because this name is correct and this name reveals the nature of the SBV Oscillator correctly, yet, we offer to implement some changes in a few terms:
| Instead of | We will use |
| "Buying Volume" | Volume during the price down-move,
Volume during the index decline
Volume during MA decline (if referred to changes in price MA)
Red SBV
We may use commonly used terminology as well :
Negative money flow
Negative volume flow
Bearish volume |
| "Selling Volume" | Volume during the price up-move,
Volume during the index advance
Volume during MA advance (if referred to price MA)
Green SBV
You may use commonly used terminology as well :
Positive money flow
Positive volume flow
Bullish Volume |
"Buying Volume
Accumulation" | Volume accumulation during the price decline
Negative volume accumulation
Bearish volume accumulation
Negative SBV accumulation
Bearish SBV accumulation
Red SBV Area |
"Selling Volume
Accumulation" | Volume accumulation during the price advance
Positive volume accumulation
Bullish volume accumulation
Positive SBV accumulation
Bullish SBV accumulation
Green SBV Area |
The principles of the SBV analysis remain unchanged, only a few terms are changed for easier learning of analysis based on volume technical indicators. Below you may see a few points which are used in the core of SBV and volume technical analysis:
- Negative volume accumulation (negative money flow accumulation) during the index decline leads the index into an oversold stage.
- Positive volume accumulation (positive money flow accumulation) during the index advance leads the index into an overbought stage.
- Declining SBV indicates Bearish sentiment.
- Advancing SBV indicates Bullish sentiment.
- When SBV changes its direction we have changes in the volume flow which indicates changes in the market sentiment which may lead toward the trend reversal.
- If as a result of a price decline the SBV Oscillator dropped into negative territory and then started to advance we may state that we see the changes in the market sentiment (from Bearish into Bullish) and we may expect a possible reaction on oversold index as a trend reversal, recovery and up-trend.
- If as a result of price advance the SBV Oscillator climbed into positive territory and then started to decline we may state that we see the changes in the market sentiment (from Bullish into Bearish) and we may expect a possible reaction on overbought index as a trend reversal, correction down and down-trend.
- How strongly the index is overbought/oversold could be evaluated from how big the Bullish/Bearish SBV accumulation (how big green or red SBV areas are ) is.
Important: The overbought/oversold index could be evaluated in different time-frames and assigned to different time-frames. If you see Bullish/Bearish SBV or volume accumulation on an intraday chart, most likely the index reaction on this overbought/oversold stage will be on intraday level. If you see a big Bullish/Bearish SBV accumulation on a 1-year chart you may assume that the index is overbought/oversold on mid-term levels and the expected reversal could result in mid-term down- or up-trend.
