SSChart™ - Other Studies

 

 

 The are four separate studies that can be applied with the Other tab of the Studies dialog.

These are selected by setting the radio button in the "Study Type" box, and hitting the [ Apply ] button.

There are no configuration parameters for these other than the line color.

 On Balance Volume and Price Volume Trend both attempt to show if there is more buying or more selling going on in a stock. Actually there is always equal buying and selling, since for every person selling, there is someone on the other side of the transaction buying.

Both of these indicators are based on the assumption that if the price goes up for the day there must be more buying pressure, indicating that the stock is being accumulated, and if the price goes down the opposite is true.

On Balance Volume (OBV) is just a running accumulation of each days volume. If the close price was lower than the open, the volume is considered negative and if the close was higher the entire days volume is considered positive.

Price Volume Trend (PVT) factors in the amount of price movement in the calculation such that larger movements in price cause a greater portion of the volume to be factored into the accumulation.

The Accumulation/Distribution Line is similar to OBV and PVT.
A portion of each day's volume is added or subtracted from a cumulative total. The nearer the closing price is to the high for the day, the more volume added to the cumulative total. The nearer the closing
price is to the low for the day, the more volume subtracted from the cumulative total. If the close is at the mid-point of the day nothing is added to the total.

The Chaikin Oscillator is calculated by subtracting a 10-day exponential moving average of the Accumulation/Distribution line from a 3-day exponential moving average of the Accumulation/Distribution line.

 

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