Technical indicator of the balance volume (On Balance Volume, OBV) binds volume to price change, which accompanied this voume. The meaning of this indicator is simple. If the closing price of the current bar is higher than closing price of previous, value of the volume of the current bar is added to the previous value OBV, if closing price of the current bar is lower than the previous, the current volume is subtracted from the previous value of the OBV.
View of indicator on the chart:
If the current closing price is higher than the previous one, then:
OBV (i) = OBV (i-1) + VOLUME (i).
If the current closing price is lower than the previous one, then:
OBV (i) = OBV (i-1) - VOLUME (i)
If the current closing price is equal to the previous one, then:
OBV (i) = OBV (i-1)
OBV (i) - value of OBV indicator in current period of time;
OBV (i-1) - values of OBV indicator in previous period of rime;
VOLUME (i) - volume of current bar.
To add and configure the indicator, you must open the settings window.
Source - settings of calculation parameters of the indicator::
Panel - select the location of the indicator on the chart:
- New panel
Show value - display the value of the indicator on price scale.
Show zero values- display zero values.
Scale - if this option is enabled, the scale will automatically be calculated based on the minimum and maximum values of the indicator, in order for the indicator to be placed on the graph.
Visual type - visual adjustment of the indicator on the graph:
- Up arrow
- Down arrow
- Axis label
Line style - customize the appearance of the line:
- Dash - dot
- Dash - dot - dot
Width - adjust the thickness of the indicator line.
Show description of indicator
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