On Balance Volume
The On Balance Volume function was developed by Joseph Granville. It calculates a cumulative volume that depends on stock price. When the closing stock price for the day is greater than the previous day's close, the volume for the day is added to the cumulative result. If the stock price decreases, volume is subtracted from the result. Applications of On Balance Volume include confirmation of price movements.
The On Balance Volume function requires the following input series:
- d0 - Volume data values - The first set of data values for which the On Balance Volume is calculated, usually the daily volume for a stock.
- d1 - Price data values - The second set of data values for which the On Balance Volume is calculated, usually the daily close price of a stock.
The On Balance Volume function requires the following parameters:
- Alignment (Optional) – Hierarchy placeholder to be used as the alignment axis.
The On Balance Volume function generates the following output:
- On Balance Volume - The On Balance Volume result set.