Our custom developed Forex On Balance Volume Divergence Indicator. On-balance volume (OBV) is a technical trading momentum indicator that uses volume flow to predict changes in stock price.
Granville believed that volume was the key force behind markets and designed OBV to project when major moves in the markets would occur based on volume changes. In his book, he described the predictions generated by OBV as “a spring being wound tightly.” He believed that when volume increases sharply without a significant change in the stock’s price, the price will eventually jump upward or fall downward.
- On-balance volume (OBV) is a technical indicator of momentum, using volume changes to make price predictions.
- OBV shows crowd sentiment that can predict a bullish or bearish outcome.
- Comparing relative action between price bars and OBV generates more actionable signals than the green or red volume histograms commonly found at the bottom of price charts.
Feel free to use this indicator together with our other technical indicators (oscillators, momentum) or price action methods to maximize your trading accuracy.
The EUR/GBP 15 minute chart below displays the Forex On Balance Volume Divergence Indicator in action.
Copy and paste the Forex On Balance Volume Divergence Indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)
How to remove Indicator from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete