Energy Flow Analyzer
- Индикаторы
- Lin Lin Ma
- Версия: 1.0
OBV (On-Balance Volume) Energy Tide Indicator is a technical analysis tool based on the correlation between trading volume and price. It dynamically tracks capital flows by accumulating volume data, assisting traders in confirming the validity of price trends and potential reversal signals. It is applicable to multiple market environments such as forex, stocks, and futures.
Core Functions and Technical Features
1. Dual-Mode Volume Adaptation
- Supports two modes: VOLUME_TICK (tick count, specialized for forex markets) and VOLUME_REAL (actual trading volume, for stocks/futures markets), flexibly switchable via the parameter InpVolumeType to adapt to liquidity characteristics of different markets.
- Defaults to VOLUME_TICK , optimized for the high-frequency trading nature of forex markets to reduce data distortion.
2. Visual Interactive Design
- Displays in an independent chart window to avoid overlap with main chart indicators, enhancing data readability;
- Plots the OBV curve as a blue solid line, dynamically mapping capital inflow/outflow trends, with integer values displayed to intuitively reflect the cumulative scale of volume energy;
- Calculation starts from the second candlestick (OBV=0 for the first candlestick), ensuring data continuity and accuracy in trend judgment.
3. Precise Volume Energy Calculation Logic
- When closing price rises: OBV = previous value + current volume (capital inflow signal);
- When closing price falls: OBV = previous value - current volume (capital outflow signal);
- When closing price remains unchanged: OBV = previous value (no significant volume energy change).
By accumulating volume in real time, it pre-emptively predicts price trend momentum and captures volume-price divergence signals (e.g., price making a new high without OBV confirmation may indicate a reversal).
Application Scenarios and Trading Strategies
- Trend Confirmation: When price and OBV move up/down synchronously, it reinforces trend validity; when divergence occurs (e.g., price falling but OBV flattening), it signals a potential trend reversal.
- Entry/Exit Signals: Used in conjunction with trend indicators like moving averages, OBV breaking through previous highs can be seen as enhanced bullish momentum, with price breakouts serving as entry references.
- Risk Control: In low-timeframe (e.g., M1) or illiquid instruments, OBV may fluctuate drastically due to sudden volume changes; it is recommended to filter noise by combining with high-timeframe (e.g., H4/D1) analysis.
Product Advantages and Usage Recommendations
- Cross-Market Compatibility: Seamlessly adapts to different trading instruments across forex, stocks, and futures through volume type switching, meeting the needs of multi-market traders.
- Core Tool for Divergence Analysis: OBV is a key indicator for identifying volume-price divergence in technical analysis, especially suitable for confirming top/bottom signals and reducing risks of chasing trends.
- Portfolio Strategy Optimization: Suggested to build trading systems with indicators like Bollinger Bands and MACD—for example, when OBV forms a bottom divergence with price and MACD generates a golden cross, it enhances signal reliability.
Technical Specifications
- Indicator Type: Volume-based technical indicator
- Display Mode: Independent window curve (blue solid line)
- Data Precision: Integer values
- Applicable Platform: MT5 trading terminal
- Optimization Direction: Support for customizable visual parameters such as color and line type (scheduled for future version iteration).
By transforming volume energy data into a visual trend curve, the OBV indicator acts as the market’s "energy radar," helping traders penetrate the surface of price fluctuations, capture the deep logic of capital flows, and provide quantitative support for strategy formulation.