OBV Strength Relative to Volume (Lakhs View)

18 giu

OBV Strength Relative to Volume (Lakhs View)
Description:

to provide a compact yet powerful insight into volume momentum and price conviction. It's tailored for traders and analysts in markets like India, where high-volume stocks are often better interpreted in lakhs.

💡 Key Features:
OBV Calculation: Cumulative OBV is computed based on price movement direction and volume contribution.

OBV Strength (%): Measures the percentage strength of OBV relative to total volume over a user-defined period. It reflects how strongly volume is contributing to price movements.

Lakhs View: Both OBV and Volume are scaled to lakhs for cleaner readability and practical analysis in high-volume securities.

Historical Table Display:

Displays date-wise OBV, Volume, and OBV Strength for the last N candles (customizable).

Automatically updates every 5 bars or on each bar for real-time analysis.

Color-coded cells for quick visual recognition.

⚙️ Inputs:
OBV Strength Period: Number of bars used to calculate OBV strength (default = 5).

Number of Days in Table: Number of recent bars shown in the on-chart table (default = 5).

📈 Plots:
OBV (Lakhs) – Aqua line.

Volume (Lakhs) – Orange columns.

OBV Strength (%) – Green line indicating momentum strength based on volume.

📍 Ideal Use:
Use this indicator to:

Spot divergences between OBV and price.

Assess the strength of volume behind a trend.

Track consistency and spikes in volume-backed price moves.

Quickly scan recent trends with a clear numerical and visual table.

8 nov

Note di rilascio

### 📊 **Indicator Summary: OBV Strength Relative to Volume (Lakhs View)**

**Purpose:**
This indicator visually combines *On-Balance Volume (OBV)*, *Volume*, and *OBV Strength (%)* to analyze how strongly volume is supporting current price movements. It helps identify early signs of trend continuation or reversal based on volume behavior.

---

### ⚙️ **Key Components**

1. **OBV (On-Balance Volume)**

* Cumulative measure of buying/selling pressure.
* Increases when price closes higher than the previous day; decreases when it closes lower.
* Displayed in **lakhs** for readability.

2. **Volume (Lakhs)**

* Daily traded volume, also converted to lakhs.
* Plotted as **green/red columns** depending on whether volume increased or decreased from the previous day.

3. **OBV Strength (%)**

* Shows how much OBV has changed compared to total traded volume over the selected lookback period.
* Positive = strong buying volume; Negative = strong selling volume.
* Expressed as a percentage.

4. **Price Movement (High–Low)**

* Indicates the intraday price range (difference between daily high and low).
* Reflects actual volatility and market activity for the day.

5. **Projected Price**

* A calculated **forecasted price level** based on OBV Strength.
* Estimates where price could move if the current volume momentum continues.
* Positive OBV Strength → projected price above current close.
* Negative OBV Strength → projected price below current close.

---

### 🧮 **Table Display**

A dynamic table (bottom-right) shows recent data for quick analysis:

| Date | OBV (L) | Volume (L) | OBV Strength % | Price Range | Projected Price |
| ----------- | ----------- | -------------- | -------------- | ------------- | ---------------------- |
| Latest date | Current OBV | Today’s volume | Strength value | High–Low diff | Estimated price target |

* **Green/Red coloring** instantly indicates whether OBV or Volume increased/decreased from the previous day.
* Table updates automatically with each new bar.

---

### 🧠 **Practical Use**

* Detect **volume-led breakouts** before price confirms.
* Identify **divergences** between price and OBV (hidden accumulation/distribution).
* Assess whether current moves are **supported by genuine volume** or weak participation.
* Use projected price to gauge **potential upside/downside** momentum continuation.

7 giorni fa

Note di rilascio

## 📊 **OBV Strength vs Volume (Adaptive Volatility Model)**

### — by Manav Prakash

This indicator combines **On-Balance Volume (OBV)**, **price volatility**, and **volume dynamics** to estimate **market strength** and a **projected price range**.
It presents both **fixed** and **adaptive** projections, along with a compact visual table summarizing the last few days.

---

### 🧮 **1. OBV and OBV Strength (%)**

* **OBV** measures cumulative buying/selling pressure:

* It adds volume when price closes higher.
* It subtracts volume when price closes lower.
* **OBV Strength (%)** expresses how strong the net buying/selling has been over a recent window (default 5 days).
[
\text{OBV Strength} = \frac{\Delta OBV}{\text{Total Volume in Period}} \times 100
]

* Positive → Buying strength
* Negative → Selling pressure

---

### 📈 **2. Price Factor & Projected Price**

The **projected price** uses OBV strength to estimate how much price might move if the current buying/selling momentum continues.
It’s based on the idea that *price follows volume*, so stronger OBV strength suggests higher projected movement.

Two projections are shown:

#### a. **Fixed Projection**

* Uses a constant **Base Price Factor** (default 0.1 = 10% sensitivity).
* Formula:
[
\text{Projected Price (Fixed)} = \text{Close} \times \left(1 + \frac{\text{OBV Strength}}{100} \times 0.1 \right)
]
This assumes price reacts uniformly to OBV changes, regardless of volatility.

#### b. **Adaptive Projection**

* Uses an **adaptive price factor**, which changes with volatility (ATR%).
* When volatility is **low**, price factor increases — suggesting price reacts **more sharply** to OBV shifts.
* When volatility is **high**, price factor decreases — price movement becomes **less sensitive**.
* Formula:
[
\text{Projected Price (Adaptive)} = \text{Close} \times \left(1 + \frac{\text{OBV Strength}}{100} \times \text{Adaptive Factor} \right)
]
The adaptive factor varies typically between **0.05 and 0.25**, dynamically adjusting market sensitivity.

---

### 📊 **3. Table Display**

The lower table summarizes key daily data:

| Column | Meaning |
| ------------- | ---------------------------------------------------- |
| Date | The date of each bar shown |
| OBV (L) | On-Balance Volume in Lakhs |
| Vol (L) | Daily traded volume in Lakhs |
| Strength % | OBV momentum (positive = buying, negative = selling) |
| Day Range % | Intraday high–low range as % of low |
| Fixed Proj | Projected price using fixed factor |
| Adaptive Proj | Projected price using adaptive factor |

**Colors:**

* Green background → Increase from previous day
* Red background → Decrease
* Orange → High volatility (large intraday range)

---

### ⚙️ **4. Practical Interpretation**

* **Rising OBV with increasing volume** → bullish accumulation.
* **Projected Price (Adaptive)** higher than current price → upside potential.
* **Projected Price (Adaptive)** falling below current price → downside risk.
* **Large difference (>4%) between projected and actual price** → possible trading signal (either overbought or oversold zone).

---

### 🧠 **5. Use Case**

This model is designed for:

* Traders analyzing **volume-led breakouts**.
* Investors wanting to detect **early accumulation or distribution**.
* Quant analysts experimenting with **adaptive volatility models** in momentum prediction.

---

### 💡 **In essence:**

> The “Adaptive OBV Strength” indicator doesn’t just show what happened —
> it **estimates what could happen next**, by blending **volume momentum** and **volatility behavior** into a simple visual projection.