On Balance Volume (OBV) was developed by Joe Granville.  It was introduced in his 1963 book, Granville's New Key to Stock Market Profits.  It operation measures buying and selling pressure as a cumulative indicator.  On price up-bars, it adds volume of the the price bar.  On price down-bars, it subtracts the bar's volume from the accumulated series.


This indicator's purpose was to measure positive and negative price volume flows.  It is often applied with a divergence calculation that measure agreement between OBV and price.  When the price and OBV directions agree, OBV is viewed as a supporting indicator of the current near term price movements.


This indicator doesn't need any parameters for it to appear:

Click to Enlarge, Click again to Reduce

On Balance Volume Indicator Settings Example.


Display below a chart indicator as a histogram will appear this way:

Click to Enlarge; Click to Reduce.

On Balance Volume Indicator Chart Example.


Edit Time: 4/8/2018 2:14:36 PM

Topic ID#: 9


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