Purpose of On Balance Volume
On Balance Volume (OBV), developed by Joe Granville, keeps a running total of volume. When a candle closes higher, its volume is added; when it closes lower, its volume is subtracted. A rising OBV suggests buyers are in control; a falling OBV suggests sellers are.
How It Works
On Balance Volume has no period settings. It is calculated with tick volume, MetaTrader's standard for this indicator.
When you select On Balance Volume (OBV) in the Trade Rule block, you can configure it with the following settings:
Time Frame of OBV
Sets the chart time frame for the OBV calculation.
Can be replaced with a variable or input for quick testing and optimization.
Candle ID of OBV
Defines which candle the calculation starts from.
0: Current candle (still forming).
1: Most recently closed candle.
Higher IDs refer to older candles.
Adjust of OBV (Modify the Result)
Apply an adjustment to the calculated value by adding, subtracting, multiplying, or dividing by a number.
Example
If you set:
Candle ID: 1
You get the OBV value of the most recently closed candle. Compare it with an older candle (for example Candle ID 20) to see whether volume is flowing in or out.
Use Cases
Confirm a trend when price and OBV move in the same direction.
Spot divergence when price rises but OBV does not.
Detect early accumulation before a breakout.
⚠ Tip: OBV is a running total, so its absolute value has no fixed meaning. Always compare it with its own earlier values.