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On Balance Volume (OBV) Indicator

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@JamesIG,

Would it be possible for the 'On Balance Volume' (OBV) to be included on the IG platform?

For those on the IG Community that are not familiar with this signal then it is an indicator that measures the volume trend for the asset you are looking to trade. From a 'Trend Following' perspective after 'Price Action' in my opinion 'Volume' is the next most important indicator. It can be used to confirm trends based on price action by identifying whether these trends are based on high or low number of actual trades. Now for me if there are high number of trades during an upward trend then it supports the price action in determining the trend itself. If there were a low number of trades then I would be far more cautious. I like to see volume supporting price action when identifying trades. 

The best way I can explain OBV is that it really is a 'Momentum' indicator. I like to see momentum when identifying trends to trade.

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Thanks for the suggestion. This has been requested a couple of times by our client base, however we don't have a road map or plan roll out for this at present due to other priorities and indicators. 

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Unfortunately I wouldn't be able to comment on longer road maps for delivery such as this. Things also change due to a number of factors outside our control which can cause these plans to change. 

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@TrendFollower

Not sure if it helps, but recently IG added 2 volume-based indicators to their offering: Volume-Weighted Moving Average and Ease of Movement.

Maybe that covers your strategy?

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@GavinB,

I am aware of the Weighted Volume Moving Average but not seen the Ease of Movement indicator you are referring to. Is this on IG’s Spread Betting platform? I don’t recall this seeing this. 

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@GavinB,

Apologies. I have just seen it. Yes I did not notice that. 

The two new indicators that I had not noticed are:

  • Ease of Movement
  • Rate of Change (This may not be a new one but I have only noticed it

Thank you very much @GavinB for this. It is very much appreciated. Nice one. 👍

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The On Balance Volume (OBV) is an indicator which uses volume flow to predict changes in price. 

The price does not always move as this indicator suggests but it is just another signal/indicator a trader can use should they wish to. 

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