L1 On Balance Volume Indicator

18 set 2020

Level: 1

Background
On Balance Volume (OBV) is a simple indicator that uses volume and price to measure buying and selling pressure. The buying pressure is evident when the positive volume exceeds the negative volume and the OBV line rises.

Function

L1 On Balance Volume Indicator is a simple but improved OBV by using alma and more input parameters

Key Signal

OBV and its ALMA

Pros and Cons

Pros:

*1. More freedom to tune with more input parameters
*2. ALMA can make better tradeoff between response and smooth


Cons:

*1. No details of volume generation can be disclosed
*2. It may help to judge trend but not the short-term price movements.


Remarks

NA

Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

23 mar

Note di rilascio

OVERVIEW

This study provides a Laguerre Transform-derived OBV indicator smoothed with adaptive moving averages (ALMA) to identify potential buy/sell opportunities. It employs dual ALMA calculations applied sequentially to raw OBV data for enhanced signal clarity.

FEATURES

Dual-layer ALMA smoothing:
Primary ALMA filter (Primary ALMA Lookback) processes raw OBV values
Secondary ALMA layer (Secondary ALMA Lookback) refines trend detection
Clear entry/exit signaling via crossover logic
Immediate trade notifications through built-in alert system
Dynamic visualization with contrasting line/fill coloring scheme

HOW TO USE

Adjust the following parameters via Inputs panel:
• Primary ALMA Lookback: Main filtering period (default 30)
• Secondary ALMA Lookback: Confirmation timeframe (default 30)

Monitor signal generation criteria:
✓ Green arrow appears when PRIMARY ALMA crosses ABOVE SECONDARY ALMA
✓ Red arrow displays when PRIMARY ALMA crosses BELOW SECONDARY ALMA

Utilize automatic alert triggers for real-time notifications

LIMITATIONS

Signal latency due to multi-stage averaging process
Performance variability during sideways market conditions
Requires additional confirmation tools for stronger reliability

NOTES

• Default lookback periods balance responsiveness and noise reduction
• Fill color shifts automatically between yellow (bullish dominance) and fuchsia (bearish dominance)
• Designed for non-overlay mode viewing alongside price charts