On Balance True Range

[Buddy]

Hi

I have search but i did not found this studie.

I want MA of OBTR EFS Studie like Alexis C. Montenegro made lots of Studies he workedhard for forum
he put lots of has time & efforts which i highly appreciat but i did not found MA of OBTR.

Basicaly i do not know about any kind of programming so i can build this studie I request for this studie
MA of OBTR based on this artical

On Balance True Range by Thomas A. Bierovic

On-Balance True Range (OBTR) is my attempt to improve on the old On-Balance Volume study (OBV).
In OBV you add today's volume to a running total of volume if the market closes higher than yesterday,
and you subtract today's volume from a running total of volume if the market closes lower than
The OBV line confirms the current trend by making new highs or new lows along with prices, or it warns of a
possible trend reversal by diverging from price action.
OBV is a reasonably good trend-following indicator, but it has two problems.
First, you cannot get accurate volume figures until the day after each trading session.
If you trade from the daily charts, you are not able to update your OBV study before the markets open the next day.
If you are an intraday trader, you must rely on tick volume, rather than actual volume, if you want to
use the OBV study. Tick volume, however, can be very misleading. Tick volume tells you the number of
trades made per intraday period, but it does not tell you the actual number of contracts traded.
For example, a tick volume of 45 for a 15 minute period tells you that there were 45 trades during that time,
but the trades could have averaged one contract per trade or 100 contracts per trade.
The second problem with OBV is that gaps are fairly common on the daily charts and can represent a considerable
change in price, but obviously no volume occurs in gaps. Volume is not representative of a market's real strength
or weakness on days where there is a gap between yesterday's close and today's high or low.
My OBTR study solves the two problems of OBV. Since there is a high statistical correlation between
volume and True Range, I simply substitute True Range for volume in the OBV study. True Range is usually just
the difference between a period's high and low. However, if the previous close is below the current period's low,
True Range is the difference between the current high and the previous close. If the previous close is above
the current high, True Range is the difference between the previous close and the current low. In other words,
True Range fills in the gaps. On-Balance True Range is an improvement to On-Balance Volume because you don’t have
to rely on tick volume or wait until tomorrow to obtain actual volume figures and because OBTR more accurately
reflects a market's real activity when there is a gap.
To calculate OBTR, just add the current period's True Range to a running total of True Ranges if the market closes
higher than the previous period's close or subtract the current period's True Range from a running total of
True Ranges if the market closes lower than the previous period's close.
For my own trading, I calculate a nine-period Exponential Moving Average (EMA) of OBTR and use OBTR crossings
of the EMA to confirm divergences between price and oscillators (e.g. MACD, RSI, and Stochastics).
Bullish divergence occurs when a market makes a low, rallies, and then declines to a lower


Best Regards

[ACM]

Re: On Balance True Range

Buddy
You can very easily create the OBTR study by modifying the OBV study that is provided in the Library folder of Formulas
To do that just replace the following line of code
var dVolume = volume(0);
with the following
var dVolume = atr(1,0);
then save the script with a new name.
At this point the easiest solution to calculate an exponential moving average of the OBTR is to write another efs that calls that one using the efsExternal() function (for the description and syntax of this function see the link to the related article in the EFS KnowledgeBase)
The efsExternal() function creates a series which you can then use as a custom source for the moving average [or other function] as shown in the example enclosed below. Note that this example is only to illustrate the required logic and is not necessarily the most efficient way to write the formula.
Alex

function main(sPrice){
    if (sPrice == null) sPrice = "Close";
    var Study = efsExternal("\\\\path_to_efs, name_of_efs.efs", sPrice);
    var MAofStudy = sma(10, Study)
    return new Array (Study.getValue(0), MAofStudy.getValue(0))
} 

Originally posted by Buddy
Hi

I have search but i did not found this studie.

I want MA of OBTR EFS Studie like Alexis C. Montenegro made lots of Studies he workedhard for forum
he put lots of has time & efforts which i highly appreciat but i did not found MA of OBTR.

Basicaly i do not know about any kind of programming so i can build this studie I request for this studie
MA of OBTR based on this artical

On Balance True Range by Thomas A. Bierovic

On-Balance True Range (OBTR) is my attempt to improve on the old On-Balance Volume study (OBV).
In OBV you add today's volume to a running total of volume if the market closes higher than yesterday,
and you subtract today's volume from a running total of volume if the market closes lower than
The OBV line confirms the current trend by making new highs or new lows along with prices, or it warns of a
possible trend reversal by diverging from price action.
OBV is a reasonably good trend-following indicator, but it has two problems.
First, you cannot get accurate volume figures until the day after each trading session.
If you trade from the daily charts, you are not able to update your OBV study before the markets open the next day.
If you are an intraday trader, you must rely on tick volume, rather than actual volume, if you want to
use the OBV study. Tick volume, however, can be very misleading. Tick volume tells you the number of
trades made per intraday period, but it does not tell you the actual number of contracts traded.
For example, a tick volume of 45 for a 15 minute period tells you that there were 45 trades during that time,
but the trades could have averaged one contract per trade or 100 contracts per trade.
The second problem with OBV is that gaps are fairly common on the daily charts and can represent a considerable
change in price, but obviously no volume occurs in gaps. Volume is not representative of a market's real strength
or weakness on days where there is a gap between yesterday's close and today's high or low.
My OBTR study solves the two problems of OBV. Since there is a high statistical correlation between
volume and True Range, I simply substitute True Range for volume in the OBV study. True Range is usually just
the difference between a period's high and low. However, if the previous close is below the current period's low,
True Range is the difference between the current high and the previous close. If the previous close is above
the current high, True Range is the difference between the previous close and the current low. In other words,
True Range fills in the gaps. On-Balance True Range is an improvement to On-Balance Volume because you don’t have
to rely on tick volume or wait until tomorrow to obtain actual volume figures and because OBTR more accurately
reflects a market's real activity when there is a gap.
To calculate OBTR, just add the current period's True Range to a running total of True Ranges if the market closes
higher than the previous period's close or subtract the current period's True Range from a running total of
True Ranges if the market closes lower than the previous period's close.
For my own trading, I calculate a nine-period Exponential Moving Average (EMA) of OBTR and use OBTR crossings
of the EMA to confirm divergences between price and oscillators (e.g. MACD, RSI, and Stochastics).
Bullish divergence occurs when a market makes a low, rallies, and then declines to a lower


Best Regards