Multiply "price values" by "OBV values"

[Wan Shi Tong]

Dear Coders,

I use On Balance Volume(OBV) indicator to specify start and end of trend.

If OBV and Price are going on same way, this means that trend will push ahead on.

If Price and OBV moves opposite ways, this means that trend will end in the near future.

Sometimes trend goes back without giving any signal as moving opposite. If we sum "difference of price values" and "difference of OBV values", we can specify true exit time and trade time.

Possibilities:

1. Price and OBV go on same way: Summed value will move away zero.

2. Price and OBV go on opposite way: Summed value will move horizontally.

3. Trend goes back instantly: Summed value will start to decrease. We can put a "stopper" to summed value. In unit of summed value, let's say, if summed value goes back 20 unit, you exit the trading automatically.

System:

We treat any definite time interval to sum price and OBV values. We can determine optimum time interval by trial and error method in any time frame.

Summing formula may be like (OBV+0.5* Price) or (3*OBV+ 0.5*Price-1)... We can make a change on it in process of time. At first step, we can make (OBV+Price) to identify the raw calculation.

Algorithm:

1. Ask for a date to user to mark the beginning of the ongoing trend. User will enter the trend beginning date to identify.

2. Indicator will calculate the values as from the date that user has input.