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:
Display below a chart indicator as a histogram will appear this way:
Edit Time: 4/8/2018 2:14:36 PM
Topic ID#: 9