I have used On Balance Volume also for drawing trendlines on it, but I have found that the Trade Volume Index ( TVI ) is much better for that purpose, because of the more organic and less flat quality of the TVI.
" The TVI is very similar to On Balance Volume. The OBV method works well with daily prices, but it doesn't work as well with intraday tick prices. Tick prices, especially stock prices, often display trades at the bid or ask price for extended periods without changing. This creates a flat support or resistance level in the chart. During these periods of unchanging prices, the TVI continues to accumulate this volume on either the buy or sell side, depending on the last price change." See: XXXX://www.stator-afm.com/trade-volume-index.html -- also for the script of TVI.
If trendline techniques are used for predicting turning points in the indicator -- then the daily TVI may be superior for that purpose.
Trade Volume Index ( TVI ) index
Studies that have been contributed to the community by other users. If you’ve got something useful to share, that’s great!
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