Technical Studies Reference

On Balance Volume

This study calculates and displays On Balance Volume.

Let $$C_t$$ be the value of the Close Price at Index $$t$$. We denote the value of the On Balance Volume at Index $$t$$ as $$V^{(OB)}_t$$, and we initialize it to zero internally (that is, $$V^{(OB)}_0 = 0)$$, though this initial value is not displayed as output. We compute $$V^{(OB)}_t$$ in terms of the Volume for $$t > 0$$ as follows.

$$\displaystyle{V^{(OB)}_t = \left\{ \begin{matrix} V^{(OB)}_{t - 1} + V_t & C_t > C_{t - 1} \\ V^{(OB)}_{t - 1} & C_t = C_{t - 1} \\ V^{(OB)}_{t - 1} - V_t & C_t < C_{t - 1} \end{matrix}\right .}$$

Inputs

• This study has no Inputs.