On Balance Volume (OBV)

On Balance Volume (OBV) is a measure of the money flowing into or out of a security. It is similar to Chaikin Accumulation / Distribution.

Usage

OBV(price, volume)

Arguments

price

Price series that is coercible to xts or matrix.

volume

Volume series that is coercible to xts or matrix, that corresponds to price object.

Value

A object of the same class as price and volume or a vector (if try.xts fails) containing the OBV values.

Details

OBV is calculated by adding (subtracting) each day's volume to a running cumulative total when the security's price closes higher (lower).

Note

OBV is usually compared with the price chart of the underlying security to look for divergences/confirmation.

References

The following site(s) were used to code/document this indicator:
https://www.fmlabs.com/reference/OBV.htm
https://www.metastock.com/Customer/Resources/TAAZ/?p=82
https://www.linnsoft.com/techind/balance-open-interest
https://school.stockcharts.com/doku.php?id=technical_indicators:on_balance_volume_obv

See also

See chaikinAD.

Author

Joshua Ulrich

Examples

 data(ttrc)
 obv <- OBV(ttrc[,"Close"], ttrc[,"Volume"])