Could you expand on how to make the best use of this indicator?
Does it work as SR on itself, previous bottoms and tops or just when interacting with 0 line? noob here
The problem with this formula is that if the candle were short with high volume or a doji, or a hammer, the multiplier would be less than if the candle actually moved with the volume…
This would not serve well for finding accumulation and distribution: for finding divergences between price and volume.
The second false solution is that the inverse of the multiplier should be used as a multiplier for volume, if you would like to use this new kind of OBV indicator in the same way as traditional OBV.
The plain English translation is that if there is a lot of volume but only a little price movement then there is either accumulation or distribution going on. The problem with this solution is that a slightly red candle will amplify volume signature even if it is on the wrong side of an accumulation phase.
My third suggestion is a combination of using the price movement as a multiplier and Chaikin Money Flow candle wick analysis as a multiplier.
and....... then i found your indicator... thanks a lot