Cryptically, technical analysts will use the MFI indicator OBV and to analyze the correlation between the movement of prices and volumes. So these indicators is to say what the trend of -Index?

After Index reached level 527.97 points at 07/06, the biggest gain since the start of the year, the index was unexpectedly turned down sharply.

Far from the day 07/06, Index has lost a total of nearly 32 points, equivalent to 6% reduction. Liquidity also declined significantly when trading volume average during this period was only 36.4 million HOSE units / day. Meanwhile, the average transaction volume since the beginning of the year reached 57.1 million units / session.

The positive point is that after hitting 38.2% Fibonacci Retracement level of 473.53 points equivalent (26/06 days), the market has bounced back. However, liquidity has not improved significantly when trading volume continued to decline sharply.

Therefore, the question arises whether the growth trend of the market has really sustainable or just a bull trap?

In the past, we see that most of the significant rise back is always accompanied by an increase in liquidity after the strong decline. Trading volume increase takes place before the price increase.

Typically, technical analysts will use the OBV indicator and MFI to analyze the correlation between the movement of prices and volumes.

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Indicator Market Facilitation Index (MFI) is used to determine the effect of price fluctuations through price fluctuation quantitatively per unit volume.

When MFI exceeds the threshold of 80, this is a sign of overbought (overbought) and we should sell as the market forecast to decline thereafter. And otherwise, this indicator is below 20 is a sign of overbought (oversold), according to which we should buy so many possibilities and then the market will turn up again.

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Contacts with the current situation, MFI's VN-Index has dropped to 20 and give buy signals, so the more likely the market will rebound.

Indicator On Balance Volume (OBV) is the fluctuating strength indicator showing the relationship between volume and price changes. OBV bullish if higher peak after peak before and higher than the previous low bottom, OBV in the opposite trend.

When OBV switch to uptrend or downtrend, it will appear a breakthrough. Since OBV often breaks up the price before investors will buy into the upward OBV breakout.

In the current period, OBV has started to go up the same way with price gains should be consolidated. If this situation remains for the coming period, the ability to break out on HOSE will increase.