OBV: is this the holy grail of trading strategies?
June 30th, 2009
This is one of the better strategies that we have tested and interestingly it is one of the few that incorporates volume.
The On Balance Volume (OBV) indicator is calculated by adding volume to the previous total if the price closes higher, and subtracting volume if the price closes lower. So an up day results in OBV being higher, while a down day results in OBV being lower. On days where the close is the same as the previous close OBV is zero.
Click here to watch the full tutorial.
Click here to download the PDF guide.
By Jeff Cartridge,
Education Manager