Detailed explanation of energy tide OBV indicator and formula for selecting high stocks before OBV breaks through

The Energy Tide OBV (On Balance Volume) indicator is a volume and price analysis tool that uses changes in trading volume to measure the capital flow of transactions and market driving forces, thereby studying and judging price trends. The OBV indicator is based on the following assumption: There is a certain relationship between changes in trading volume and price changes. The OBV indicator was invented by Joseph Granville, who also created Granville's eight moving average rules.

The OBV indicator is calculated by comparing today’s volume to the previous day’s volume, as follows:

If today's closing price is higher than yesterday's closing price, then today's trading volume is calculated as positive +V;

If today's closing price is lower than yesterday's closing price, then today's trading volume is calculated as a negative value -V;

If today's closing price is equal to yesterday's closing price, then today's trading volume is calculated as 0.

Today's OBV = yesterday's OBV + today's +V or -V or 0. MAOBV is the average OBV over a period of time (OBV moving average). It can be seen from the formula that OBV is obtained by accumulation. For details on how to accumulate, you can refer to the previous article " Combining MACD with OBV and using OBV to improve the MACD indicator formula ". There are detailed examples in the article and I will not go into details here.

By comparing OBV with price trends, it helps to analyze the balance of power between buyers and sellers:

If the OBV rises along with the price, it indicates that the market has strong buyer power. Such a trend will help confirm the reliability of the price increase; if the OBV also decreases when the price falls, it indicates that the market seller power is strong. Such a trend may cause the price to rise. fell.

If the stock price rises and the OBV falls, there may be a risk of fewer buyers, and the price may correct or remain unchanged; if the stock price falls and the OBV rises, there may be an increase in buyers, and the price may rise or remain stable.

1. OBV main chart indicator formula for breaking through the previous high

VA:=IF(CLOSE>REF(CLOSE,1),VOL,-VOL);

OBV:=SUM(IF(CLOSE=REF(CLOSE,1),0,VA),0);

MAOBV:=MA(OBV,30);

CXG:=OBV=HHV(OBV,30);{OBV hits a new high on the 30th}

T1:=BARSLAST(CXG);

HO:=REF(OBV,T1);{OBV value corresponding to new high}

JC:=CROSS(OBV,MAOBV);{OBV and OBV moving average golden cross}

T2:=BARSLAST(JC);

AA:=CROSS(OBV,REF(HO,1)) AND C>O;{OBV breaks through the previous high}

XG:=AA AND COUNT(AA,T2)=1;

STICKLINE(XG,H,L,0,1),COLORYELLOW;

STICKLINE(XG,C,O,3,0),COLOR117777;

STICKLINE(XG,C,O,2.5,0),COLOR119999;

STICKLINE(XG,C,O,2,0),COLOR11BBBB;

STICKLINE(XG,C,O,1.5,0),COLOR11DDDD;

STICKLINE(XG,C,O,1,0),COLOR44FFFF;

DRAWICON(XG,L,1);

2. Stock selection formula for high stocks before OBV breakthrough

VA:=IF(CLOSE>REF(CLOSE,1),VOL,-VOL);

OBV:=SUM(IF(CLOSE=REF(CLOSE,1),0,VA),0);

MAOBV:=MA(OBV,30);

CXG:=OBV=HHV(OBV,30);

T1:=BARSLAST(CXG);

HO:=REF(OBV,T1);

JC:=CROSS(OBV,MAOBV);

T2:=BARSLAST(JC);

AA:=CROSS(OBV,REF(HO,1)) AND C>O;

XG:AA AND COUNT(AA,T2)=1;

Friendly reminder: This article is only for learning and communicating technical indicator formulas and does not constitute any investment advice. Investment is risky, so be cautious when entering the market.