JeroenHouttuin

Cumulative Force, Weighted OBV

Cumulative Force Indicator. Can also be seen as an OBV indicator that takes the price differences into account. In a regular OBV, a high volume bar can make a huge difference, even if the price went up only 0.01, and it it goes down 0.01 instead, that volume makes the OBV go down big time, even though in both cases hardly anything really happened. cForce is a more realistic view on where the money is flowing.

This is my first published script, so feel free to let me know if you see room for improvements.
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////////////////////////////////////////////////////////////
//  Copyright by Playak v1.0 29/01/2015
// Cumulative Force Indicator. Can also be seen as an OBV
// indicator that takes the price differences into account.
// In a regular OBV, a high volume bar can make a huge difference,
// even if the price went up only 0.01, and it it goes down 0.01
// instead, that huge volume makes the OBV go down, even though
// hardly anything really happened.
////////////////////////////////////////////////////////////
study(title="Cumulative Force / Weighted OBV", shorttitle="cForce")
b = input(title="Close relative to open (default is relative to previous close)", type=bool, defval=false)
force = volume * (close - (b ? open: nz(close[1])))
xforce = cum(force)
plot(xforce)
snapshot

This is very helpful in day trading. Fast moving markets with higher volume don't really register with usual indicators which measure price movements only. They don't give you an idea of the true speed of the market. Your indicator does. Thanks.
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Very good compromise between OBV and Acc/Dist. Take the bar size into account compare to the classical OBV. And take into account the bar gap compare to Acc/Dist indicator.
Excellent indicator to find divergence between price and volume. One of my favorite indicator to exit a position.
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