The Worden Brothers, patented MoneyStream indicator, claim that their indicator is better and more predictive than OBV. Who doesn't know, these are indicators, which link price and volume. Is considered, what can be determined where the money is flowing — in accumulation or distribution, especially when there is a divergence between the indicator and the price, i.e, for example, the price seems to be falling, but money is all the same, according to indicator, текут, mostly, in purchases and this means that the price will inevitably turn up. Honestly, I have never used indicators, linking volume and price, but Brother Worden interprets this so convincingly that I decided to take a closer look at the anatomy of this phenomenon.
Here are examples, when there was a divergence between the price regression and the regression of the MoneyStream indicator, the secret of which the Vorden brothers keep vigilant. The red line is the price regression, and blue — regression MoneyStream. MoneyStream itself on the chart is also blue on the price chart:
Let's see what happens next.