On Balance Volume
Contents
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:
On Balance Volume Indicator Settings Example.
Display below a chart indicator as a histogram will appear this way:
On Balance Volume Indicator Chart Example.
Edit Time: 9/12/2020 10:28:46 AM |
Topic ID#: 9 |