OBV Correlation [Fournier-Eaton]

This is the On Balance Volume Correlation (And Price Correlation) Indicator. Directions of each has been encoded with color.

This Indicator is one of a series of scripts which I hope will aid in volume analysis.

• The primary component is the histogram plot which represents the correlation between the direction of obv of your current equity and your chosen reference equity.
  
• I have included the direction of OBV for your currently plotted equity encoded as color. (Thus you know that if the plot is negative and blue, that the correlation is negative but the OBV for your current equity is increasing.)
  
• Furthermore, I included a supplementary price correlation line for the given equities. This line has had price direction encoded as color for quick reference.
  
• Thus as a quick example: if you see a blue negative histogram and an accompanying red positive line you know that: 1. obv is increasing and anti-correlated with your reference equity and the price is decreasing and positively correlated with your reference equity. A lot of information encoded in one plot.
  

If you find this at all useful, I'd love to hear from you.

Bradford Fournier-Eaton, PhD

Versionsinformation:

• UPDATE: obv length corrected to be independent of correlation length(s).