MFI, OBV, PVT, and SOBV Volume-Based Technical Indicators
Summary
This document outlines four indicators that combine price and trading volume: the Money Flow Index (MFI), On-Balance Volume (OBV), Price Volume Trend (PVT), and a simplified OBV variant called SOBV. MFI compares rolling positive and negative money flows, with money flow based on typical price multiplied by volume. OBV cumulatively adds or subtracts daily volume according to whether the close rises or falls; the text also mentions a modified calculation that returns OBV divided by 100. PVT accumulates volume weighted by the percentage change in closing price. SOBV instead adds or subtracts volume according to whether the close is above or below the open.
The document provides calculation descriptions but no worked examples, parameter recommendations, trading rules, performance results, or source code. It does not explain how to interpret indicator values or compare them across securities, and the MFI description leaves the lookback period unspecified. These measures can be treated as candidate features for analysis, but the text alone does not establish that they predict returns or make a complete strategy.
Key ideas
- MFI compares rolling positive and negative money flows derived from typical price and volume.
- OBV accumulates volume with a sign determined by the change in closing price.
- PVT accumulates volume weighted by the percentage change in closing price.
- SOBV signs volume according to whether the close is above or below the open.
- The document gives formulas but no tests, parameter guidance, or trading rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.