Introduction to OBV Indicator
Who developed the OBV Indicator?
What does the On-Balance-Volume tell you?
Other Indicators that Work Like the On-Balance Volume?
How is the On-Balance-Volume Calculated?
What are the best strategies using OBV intraday?
Key Things to Note about On Balance Volume
Advantages and Disadvantages of OBV
Frequently Asked Questions
On Balance Volume (OBV) and the Accumulation Distribution Line are all combined volume-based metrics. Periodic values are added or subtracted in order to form a map (time series plot) comparable to the underlying security. The difference between these two indicators depends on the close relative. OBV contrasts the closure with the previous closing, while the Accumulation Distribution Line compares the closing with the high-low.
On-Balance Volume increases as volume outstrip volume on down days or modified days. OBV decreases as demand becomes higher on down-days. An upward OBV reflects positive volume pressure that may result in higher prices. In comparison, the decrease in OBV represents negative demand pressure that can predict lower prices.
I’ll go for the Chaikin Money Flow (CMF). The reason why Chaikin Money Flow is the best volume and the classic Volume Indicator is that it measures the accumulation-distribution of institutions.
Primarily, a stock market metric and the fundamental definition used by Granville to develop the OBV measure according was that when a stock closed higher than its prior regular closing, the overall value of the day is called up-price.
OBV delivers the most accurate reviews on high and low results, making it a good method for assessing breakout and breakdown capacity.it is a basic method that compares the progress of the variable to market behaviour, and notices convergence or divergence relationships.
Computation on average volume is determined by applying the volume of the day to a combined sum as the price of the security ends, and by subtracting the volume of the day when the price of the security closes.
Simply follow the following steps:
– Download Indicator on mq4 in RAR file.
– Extract the download file.
– Go to “File Menu” in the upper left-hand corner of the MetaTrader4, and click “Open Data Folder”
– Open the folder called “MQL4”
– Copy the folder called “Indicators” and paste the downloaded file in the indicator folder.
– Reboot your MetaTrader4
– Voila, you have installed your OBV indicator.