thE hAnDbook of tEchnicAL AnALySiSaction, where volume is subtracted during falling prices. This disparity only affects
selling climaxes and not blow offs. In Figure 9.66, we observe that during a sharp de-
cline in the EURUSD, the volume bars peaked, whereas all three volume oscillators—
that is, the MFI, ADL, and the OBV—spiked downward. Notice also that the moving
average of volume is also interpreted using the same rules as for volume bar action.
In Figure 9.67, we see volume bar divergence indicating a bearish confirmation,
which is reinforced by the ADL signaling a reverse bearish divergence in the EURUSD.
Figure 9.66 Volume Bar Divergence during a Sharp Decline.
Source: MetaTrader 4
Figure 9.67 Volume Bar and Volume Oscillator Divergence.
Source: MetaTrader 4