Multi time frame MTF On Balance Volume OBV
A momentum indicator that uses volume flow to predict changes in stock price. When volume increases sharply without a significant change in the stock's price, the price will eventually jump upward, and vice versa. The theory behind OBV is based on the distinction between smart money – namely, institutional investors – and less sophisticated retail investors. As mutual funds and pension funds begin to buy into an issue that retail investors are selling, volume may increase even as the price remains relatively level. Eventually, volume drives the price upward. At that point, larger investors begin to sell, and smaller investors begin buying.
With this Multi time frame MTF version On-Balance Volume OBV, you can apply any time frame of OBV to your current chart.
You can have OBV for 15 or 60 minute on your 5 minutes chart, or having weekly OBV on Daily chart.
MTF OBV is a good tool to detect divergence between current OBV(yellow) and higher timeframe OBV(blue).
It helps you track the volume trend across all different timeframes and instruments in one chart.
There is only one input, a dropdown list of all timeframes you can choose.
The dropdown list makes it easier for you to fast select your desired timeframe.