I’m seriously losing track of how many features we’re adding. I think this is the seventh one in two days. Anyway, as the title suggests SlopeCharts, my pride and joy, now has On Balance Volume.
The On Balance Volume (OBV) indicator is a relatively simple SlopeCharts indicator that combines volume and price to help determine change of trend. The OBV line chart doesn’t have its own price scale. Instead, you simply need to observe the pattern of the line and how it relates to the price chart as a whole.
As strong volume accompanies rising prices, the OBV will surge higher. However, as strong volume occupies drooping prices, the OBV will push lower. The higher the volume, the more “weight” the up or down movement in price will have. The lower the volume, the less the OBV will move based on the present direction. (more…)