MultiVote OBV Combines High, Low, and Close Direction with Volume

Summary

MultiVote OBV modifies standard On Balance Volume by using changes in the high, low, and close rather than relying on closing-price direction alone. For each bar, it assigns a positive vote when a price component rises from its previous value and a negative vote when it falls. The three votes are added, multiplied by volume, and accumulated into the indicator. This makes the calculation responsive to more parts of the bar's price range.

The document specifies no configurable parameters and describes positive readings as green and negative readings as red. It provides the calculation rules but gives no chart examples, market data, performance results, or trading entry and exit rules. Therefore, its claim of greater sensitivity is a design description rather than demonstrated evidence. The indicator can be understood as a volume-weighted directional measure, but the text does not establish that it predicts returns or avoids false signals; any use in a strategy would require independent testing.

Key ideas

• The indicator accumulates volume weighted votes from high, low, and close changes.
• Each component contributes a positive vote when it rises and a negative vote when it falls.
• The combined vote can range from negative to positive depending on how many price components move in each direction.
• The document specifies no settings, trading rules, or empirical performance evidence.
• Greater sensitivity is presented as a consequence of the calculation, not as a tested result.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.