MetaStock On Balance Volume Function

MetaStock On Balance Volume Function
On Balance volume is an alternative way of studying the volume of a security. It depicts volume as a running total and thereby tracks the amount of volume flowing into and out of a security. The On Balance Volume (OBV) value is calculated using the actual volume figures for each period. When the security closes higher than the previous period’s close the volume for that period is added to the OBV total, and is considered up volume. If the security closes lower than the previous period’s close then the volume for that period is subtracted from the OBV total, and is considered down volume. If the close is exactly the same, there is no change to the OBV total. A running total is kept by adding or subtracting the result from the current total.