On-balance volume (OBV) is a technical trading momentum indicator that uses volume flow to predict changes in stock price. Joseph Granville first developed the OBV metric in the 1963 book Granville’s New Key to Stock Market Profits.
The issue with the “regular” OBV is that it is not too informative. Changes direction very frequently, no levels to be used as “signals” of any sort./ This version is adding a sort of Donchian channels to OBV in order to address that issue and to bring one possible solution for lack of signals / information
Recommendations:
Use it as you usually sue OBV
Or use color changes as possible breaks and retracements
The class for drawing the OBV using the ring buffer… Description The COBVOnRingBuffer class is designed for calculation the technical indicator On Balance Volume (On Balance Volume, OBV)Â using the algorithm…
