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    On Balance Volume (OBV)
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      On Balance Volume (OBV)

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        Article summary

        On Balance Volume (OBV) is a momentum indicator that uses volume flow to predict changes in a security price. The OBV values are calculated as the cumulative total of the up and down volume. When the close is higher than the previous close, the volume is added to the running total (up-volume), and when the close is lower than the previous close, the volume is subtracted from the running total (down-volume). If the price moves before OBV,  it's a "non-confirmed" move which is tend to occur at bull market tops or at bear market bottoms. A series of rising peaks, or failing troughs in OBV indicates a strong trend. If OBV is flat, then the market is not trending.

        1. If today's close is greater than yesterday's close then:

        OBV = Yesterday's OBV + Today's Volume

        2. If today's close is less than yesterday's close then: 

        OBV = Yesterday's OBV - Today's Volume

        3. If today's close is equal to yesterday's close then: 

        OBV = Yesterday's OBV


        On Balance VolumeOn Balance Volume 


        PLOTS

        The plot renders the data you are working with on the chart. You can show/hide a plot by clicking the corresponding item in the settings. Every plot has a set of basic settings that you can change: color, weight, and type.

        PlotDescription
        OBVThe On Balance Volume plot
        Color

        Click the color rectangle under the plot's name to open the palette. Use the slider at the bottom to set the opacity of the color.

        Palette

        To create a custom color:

        1. Clickto open the color picker
        2. By using the slider at the bottom, adjust the main color
        3. Then, set a shade for the main color on the palette

        The custom-created colors are added to your palette. To remove a custom color, drag it out of the palette.

        Weight
        Change the value (in px) to adjust the thickness of the plot.
        Type
        The following plot types are available:
        • Linear. The plot is displayed as a line.
        • Column. The plot is displayed as a histogram.
        • Difference. The plot is displayed as a line which represents the difference between High and Low prices of the bar.
        • Points. The plot is displayed as points.
        • Text above candle. The plot is displayed as the price labels above candles on the chart.
        • Text below candle. The plot is displayed as the price labels below candles on the chart.
        • Triangle above candle. The plot is displayed as triangles above candles on the chart.
        • Color candle. The candles on candle-type charts are highlighted with specified colors.

        OVERLAYING

        Check Overlaying to display the indicator on the chart. Otherwise, the indicator is shown in a study pane down below.

        Note: To reset the settings, click Restore to Default next to the SETTINGS: INDICATOR'S TITLE
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