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Courses
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Robots
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- What is the difference between EA Trading Academy's free and premium robots
- Which broker should I use to trade the Robots?
- Do I need a VPS to trade with Robots?
- Can I use Robots on cryptocurrency exchanges?
- How to trade with many EAs in the US? (FIFO solutions)
- I placed the EAs over the charts, but no trades are opening
- Is it possible to trade cryptocurrencies with Robots?
- Why do my trades not match on Demo and Live accounts with the same EAs?
- Why do some of the EAs in the courses not have SL and TP?
- Do the EAs have money management integrated?
- What returns should I expect from the robots
- Can I use Grid EA (like Waka Waka) on Prop Firms?
- Can you pass a challenge for me and manage my Funded account with the FTMO EA?
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- Articles coming soon
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Strategy Builders
- What are the main differences between EA Studio and FSB Pro?
- Is there a difference between the trial period and the license?
- Why is the backtest on EA Studio/FSB Pro different from the backtest in MetaTrader?
- Can I use Custom indicators on EA Studio or FSB Pro?
- What are the limitations of the EAs during the free trial?
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- Articles coming soon
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General Questions
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Indicators
On Balance Volume (OBV)
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On Balance Volume
On Balance Volume is a momentum indicator. It predicts changes in the price of an asset by using volume flow.
This indicator is cumulative and all of the weight of analysis is placed on the slope of the OBV line. Joseph Granville thought that whenever volume increased sharply without a corresponding change in the price of a stock, there was likely to be a corresponding drop or rise in price shortly thereafter.
OBV provides traders with a running total of the asset’s trading volume. In this way, it gives an indication of crowd sentiment. If you notice that the volume is increasing rapidly, that means a lot of traders are jumping into the market. There must be a strong pull in either direction shortly after you observe that rising interest.
Calculation of On Balance Volume
The method of calculating On Balance Volume will vary according to the closing price.
The following formulae are used to calculate On Balance Volume :
If today’s close is greater than yesterday’s close then: OBV(i) = OBV(i1)+VOLUME(i) If today’s close is less than yesterday’s close then: OBV(i) = OBV(i-1)- VOLUME(i) If today’s close is equal to yesterday’s close then: OBV(i) = OBV(i-1)
These symbols are used in the On Balance Volume formula::
OBV(i) – is the indicator value of the current period;
OBV(i-1) – is the indicator value of the previous period;
VOLUME(i) – is the volume of the current bar.
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