How To Calculate On-Balance Volume (OBV) using MATLAB?

by norberto_waelchi , in category: Technical Analysis , 2 months ago

How To Calculate On-Balance Volume (OBV) using MATLAB?

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1 answer

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by annalise , 2 months ago

@norberto_waelchi 

To calculate On-Balance Volume (OBV) using MATLAB, you can follow these steps:

  1. Create a vector or array of the closing prices of the asset for which you want to calculate OBV. Let's say you have a vector called 'closing_prices'.
  2. Create another vector of the same length as the closing prices vector to store the OBV values. Let's call this vector 'obv'.
  3. Initialize the first OBV value as 0, as there is no previous OBV value to consider.
  4. Loop through the closing prices vector starting from the second element, and calculate the OBV value for each day based on the current closing price and the previous closing price.
  5. If the current closing price is higher than the previous closing price, add the trading volume for that day to the previous OBV value. If the current closing price is lower, subtract the trading volume.
  6. Store the calculated OBV value in the 'obv' vector.
  7. After the loop is complete, you will have the OBV values for each day in the 'obv' vector.


Here is a sample MATLAB code to calculate OBV:

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% Sample closing prices vector
closing_prices = [100, 105, 110, 95, 100, 105];
% Sample volume vector
volume = [1000, 1200, 1500, 900, 1100, 1300];
% Initialize OBV vector
obv = zeros(1, length(closing_prices));
% Initialize first OBV value
obv(1) = 0;
% Calculate OBV
for i = 2:length(closing_prices)
    if closing_prices(i) > closing_prices(i-1)
        obv(i) = obv(i-1) + volume(i);
    elseif closing_prices(i) < closing_prices(i-1)
        obv(i) = obv(i-1) - volume(i);
    else
        obv(i) = obv(i-1);
    end
end

disp(obv);


This code will calculate the OBV values based on the given closing prices and volume data. You can modify the code to use your own data and make it more robust as needed.