Comments on: On-Balance Volume Indicator (OBV) – Complete Guide for Traders https://aky.pbv.mybluehost.me/on-balance-volume/ Official Blog of Earn2Trade Wed, 29 Nov 2023 23:09:25 +0000 hourly 1 https://wordpress.org/?v=6.9 By: Munish Kohli https://aky.pbv.mybluehost.me/on-balance-volume/#comment-5928 Wed, 29 Nov 2023 23:09:25 +0000 http://aky.pbv.mybluehost.me/?p=12937#comment-5928 Nice and informative article. “Market makers and high-speed traders can often inflate the volume numbers by generating fake orders and canceling them right before execution”. Don’t the CandleStick have only executed orders or are they composed of both executed and orders placed? What are the different ways or in the first place are there any to identify fake orders?

]]> By: James Daniel https://aky.pbv.mybluehost.me/on-balance-volume/#comment-3362 Tue, 16 Mar 2021 13:17:43 +0000 http://aky.pbv.mybluehost.me/?p=12937#comment-3362 I have an issue with the described difference between cumulative delta and OBV in this article as it is inaccurate. Both cumulative delta and OBV consider all (bid/ask volume…this is the only type of volume there is…), it’s only that cumulative delta doesn’t also consider price and is simply taking the buy/sell volume, partitioning the two sides and adding buy volume and subtracting sell volume from a running total.

So the formula for CD is:

BarDelta = Vol.BuyVol – Vol.SellVol

CD = CD + BarDelta

Where the formula for OBV is:

if (LastClose < CurrentClose)
OBV = OBV – Vol
else
OBV = OBV + Vol

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