OBV - On Balance Volume

The On Balance Volume relates the (Volume) and the accompanying price change.

Parameters:

No parameters.

Calculation:

A recursive formula is used. Three cases are possible:

1. The close for the intervals j and (j-1) are the same. The indicator stays the same. If , then
2. The close for the interval j exceeds the value for the previous, (j-1)-th period. The indicator is the sum of its value for the previous time interval and the volume for the j-th interval. If , then
3. The close for the interval j is less than for the previous, (j-1)-th, period. Then the indicator is equal to the difference: If , then