On-Balance Volume (OBV) is a momentum indicator developed in 1963 by Joseph Granville.
OBV shows the importance of volume and its relationship to price. It compares the positive volume flows with the price over a certain period of time.
To confirm that the trend may be weakening, Granville recommends using a 20-period moving average in combination with OBV.
As a result, it is easier for users to track such events by crossing the OBV line with their moving average.
In Forex, the trader has no information about the real volume. Therefore, the OBV/MA bundle works better in the stock market.
- Type of Volume: the type of volume – tick (Tick) or real (Real).
- Moving average period: the period of the moving average.
- Shift of the moving average: shift of the moving average.
You can include this indicator in an Expert Advisor, script, or other indicator using the iCustom function of the MQL5 language.