Originally published: 01/06/2023 13:36
Publication number: ELQ-26381-1
View all versions & Certificate
Publication number: ELQ-26381-1
View all versions & Certificate
On Balance Volume Indicator – Technical Analysis
Use this free Excel template to calculate On Balance Volume Indicator for any stock you are interested in!
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Description
What is ‘On Balance Volume’ indicator?
The basic theory behind the On Balance Volume indicator is that volume precedes price. Buying and Selling pressure precede actual price changes, and this indicator measures the buying and selling pressure by using volume.
When the volume on PRICE UP days is greater than the volume on PRICE DOWN days, OBV increases.
When the volume on PRICE DOWN days is greater than the volume on PRICE UP days, OBV decreases.
How to calculate On Balance Volume (OBV)?
If Current Closing Price > Previous Closing Price, then Prev OBV + Current Volume
If Current Closing Price < Previous Closing Price, then Prev OBV – Current Volume
If Current Closing Price = Previous Closing Price, then Prev OBV
Since it is a cumulative type indicator with a current value depending on the previous value, it makes a difference when you start calculating this indicator.
If you start calculating with price history data of 1 year, versus 5 years, you will have a different OBV value today.
Trading Signals
When OBV is up, buying pressure is up and when OBV is down, then selling pressure is up.
Src: TradingView.com
How to use the template to calculate OBV ?
1. Type in a stock sticker symbol on the top left.
2. Period
The template can pull up to 5 years of price history by default. You can choose how much history to display on the chart easily using the slicer buttons.
3. Interval
The template allows price history at 3 different intervals.
4. Input Parameters
There is no input parameter that will change the On Balance Volume calculations in the template. However you can change the blue line displayed to represent something other than Closing price (which is default) if needed.
5. Source: Closing price is the one that is used to display as blue line in the chart. However, you can choose to display values from Open, High, Low, Close or Volume.
The chart will update automatically based on all the above inputs.
Timezone
On the top right you can see the maximum of the last trade time of these currencies.
The default time that Microsoft provides is UTC. The offset is set to -7 hrs, to convert to pacific time zone.
You can modify this if you need the time in a different time zone.
Note: To pull live Stock data from the services you would need Microsoft 365 Subscription Plans for PC and Web
What is ‘On Balance Volume’ indicator?
The basic theory behind the On Balance Volume indicator is that volume precedes price. Buying and Selling pressure precede actual price changes, and this indicator measures the buying and selling pressure by using volume.
When the volume on PRICE UP days is greater than the volume on PRICE DOWN days, OBV increases.
When the volume on PRICE DOWN days is greater than the volume on PRICE UP days, OBV decreases.
How to calculate On Balance Volume (OBV)?
If Current Closing Price > Previous Closing Price, then Prev OBV + Current Volume
If Current Closing Price < Previous Closing Price, then Prev OBV – Current Volume
If Current Closing Price = Previous Closing Price, then Prev OBV
Since it is a cumulative type indicator with a current value depending on the previous value, it makes a difference when you start calculating this indicator.
If you start calculating with price history data of 1 year, versus 5 years, you will have a different OBV value today.
Trading Signals
When OBV is up, buying pressure is up and when OBV is down, then selling pressure is up.
Src: TradingView.com
How to use the template to calculate OBV ?
1. Type in a stock sticker symbol on the top left.
2. Period
The template can pull up to 5 years of price history by default. You can choose how much history to display on the chart easily using the slicer buttons.
3. Interval
The template allows price history at 3 different intervals.
4. Input Parameters
There is no input parameter that will change the On Balance Volume calculations in the template. However you can change the blue line displayed to represent something other than Closing price (which is default) if needed.
5. Source: Closing price is the one that is used to display as blue line in the chart. However, you can choose to display values from Open, High, Low, Close or Volume.
The chart will update automatically based on all the above inputs.
Timezone
On the top right you can see the maximum of the last trade time of these currencies.
The default time that Microsoft provides is UTC. The offset is set to -7 hrs, to convert to pacific time zone.
You can modify this if you need the time in a different time zone.
Note: To pull live Stock data from the services you would need Microsoft 365 Subscription Plans for PC and Web
This Best Practice includes
1 Excel Template
