Abbreviation: OBV Avg Diff
Category: Volume: Smoothed
Input Parameters:
| Name | Range | Default |
| Closing Price | Close | |
| Volume | Volume | |
| Avg1 Periods | Int >= 1 | 5 |
| Avg2 Periods | Int >= 1 | 10 |
Calculation:
Avg(X, Avg1 Periods) – Avg(X, Avg2 Periods)
where
X = OBV: Raw(Closing Price, Volume)
OVB: Raw represents On Balance Volume: Raw
Avg represents Simple Moving Average
Discussion:
This indicator attempts to quantify movements in the On Balance Volume indicator by calculating the difference between two moving averages. Since it uses simple moving averages (which give equal importance to all the periods within the moving average’s time frame), the indicator treats all periods alike, and does not focus more upon movement between recent or relatively higher volume periods as do the exponential and volume weighted variants.