Created
: 2022.08.25
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Add on-balance volume to chart
Add on-balance volume to chart
On MetaTrader4 (MT4) / MetaTrader5 (MT5), you can display the On-balance volume (OBV), a technical indicator developed by Joseph Granville (USA). The calculations are very simple and easy to understand as follows.
- Current close price > previous close price: OBV = previous OBV + current volume
- Current close price < previous close price: OBV = previous OBV - current volume
- Current close price = previous close price: OBV = previous OBV
Here we will look at how to add OBV to a chart on MT4/MT5.
Switch between MT4/MT5 tabs to check the steps for each.
Substitute data for forex
Since it uses volume, it is suited for symbols that have volume data such as stocks. In forex trading, volume data is unavailable since you're trading with forex brokers, so this is not used as often. If you cannot acquire volume data, you can use the "tick volume" instead, which is the number of ticks provided by brokers in a given timeframe.
Step 1
OBV can be set up from the menu or the Navigator.
Add OBV from the menu
Click "Insert" in the menu. Hover the pointer over "Indicators" > "Volumes" and select "On Balance Volume".
Add OBV from the Navigator
On the Navigator, click on the "+" signs next to "Indicators" and "Volumes". Select "On Balance Volume" and drag it onto the chart you wish to apply it to.
Or, right-click on "On Balance Volume" and select "Attach to a Chart".
Step 2
The setting window for OBV will appear. Set the parameters in the "Parameters", "Levels", and "Visualization" tabs and click "OK".
"Parameters" tab
|
Number |
Item name |
Descriptions |
|---|---|---|
|
1 |
Apply to |
Price to use for calculating OBV. Close: close price Open: open price High: high price Low: low price Median Price (HL/2): (high price + low price) ÷2 Typical Price (HLC/3): (high price + low price + close price) ÷3 Weighted Close (HLCC/4): (high price + low price + close price×2) ÷4 |
|
2 |
Style |
Set the color, line type, and line thickness for OBV. |
|
3 |
Fixed minimum |
Set the minimum value for the sub-window to display OVB. |
|
4 |
Fixed maximum |
Set the maximum value for the sub-window to display OVB. |
"Levels" tab
In the OBV sub-window, you can display horizontal lines at the specified levels. If you want to add a horizontal line, click "Add" and enter the number.
"Visualization" tab
In the "Visualization" tab, you can set the timeframes to display OBV. As OBV can only be displayed in a sub-window, it will be displayed in the sub-window even if "Show in the Data Window" is unchecked.
Step 3
OBV will be displayed on the sub-window of chart.
Volume indicators
In general, indicators can be grouped into two categories: trend and oscillator indicators. These indicators are designed to focus on price fluctuations. On the other hand, OBV looks at volume in addition to price fluctuations. Like OBV, indicators that focus on volume are classified as volume-based.
Step 1
OBV can be set up from the menu or the Navigator.
Add OBV from the menu
Click "Insert" in the menu. Hover the pointer over "Indicators" > "Volumes" and select "On Balance Volume".
Add OBV from the Navigator
On the Navigator, go to "Indicators" and click on the "+" sign next to "Volumes". Select "On Balance Volume" and drag it onto the chart you wish to apply it to.
Or, right-click on "On Balance Volume" and select "Attach to Chart".
Step 2
The setting window for OBV will appear. Set the parameters in the "Parameters", "Levels", "Scale", and "Visualization" tab and click "OK".
"Parameters" tab
|
Number |
Item name |
Descriptions |
|---|---|---|
|
1 |
Volume |
Set the volume for the OBV data. Volume for forex and CFD symbols not traded in the exchange cannot be calculated. In which case the system will use the tick volume instead of volume. |
|
2 |
Style |
Set the color, line type, and line thickness for OBV. |
"Levels" tab
In the OBV sub-window, you can display horizontal lines at the specified levels. If you want to add a horizontal line, click "Add" and enter the number.
"Scale" tab
Set the scale of the sub-window for OBV.
|
Number |
Item name |
Descriptions |
|---|---|---|
|
1 |
Inherit scale |
Check this box if you want to inherit the scale of the previous indicator when displaying multiple indicators on the same sub-window. |
|
2 |
Scale by line |
Specify where you want the OBV to show up on the sub-window. If you set the scale percentage to "50" and the scale value to "0", the scale of the vertical axis will be adjusted so that the scale value of "0" will be set at the 50% mark (max value is 100%). |
|
3 |
Fixed minimum/maximum |
Set the min/max value for sub-window to display the OBV |
"Visualization" tab
In the "Visualization" tab, you can set the timeframes to display OBV. As OBV can only be displayed in a sub-window, it will be displayed in the sub-window even if "Show in Data Window" is unchecked.
Step 3
OBV will be displayed on the sub-window of chart.
Volume indicators
In general, indicators can be grouped into two categories: trend and oscillator indicators. These indicators are designed to focus on price fluctuations. On the other hand, OBV looks at volume in addition to price fluctuations. Like OBV, indicators that focus on volume are classified as volume-based.
Last updated
: 2023.08.04
Nakamaru is a manual production consultant at FINTECS, a company that specializes in creating manuals for their clients.
With a wide range of experience from fintech to entertainment, he presents what user-friendly manuals should be like.
He works with numerous large corporations as an external manual production project manager.
【Business information】
http://www.fintecs.co.jp/profile/
Supervisor
Akira Takagi
Systems engineer, MetaTrader administrator
After graduating from Computer Science at the Uninove, Brazil, in 2014, he has worked on various systems development projects.
He participated as a developer in the launch of forex services in 2019. Since then, he has also been involved in the development of MetaTrader plugins and APIs. He is certified by MetaQuotes as a MetaTrader5 Administrator and active in consulting and advisory as well.
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