{"id":20817,"date":"2021-05-05T16:01:35","date_gmt":"2021-05-05T16:01:35","guid":{"rendered":"https:\/\/www.highcharts.com\/blog\/?p=20817"},"modified":"2026-01-13T11:19:11","modified_gmt":"2026-01-13T11:19:11","slug":"five-useful-technical-indicators-part-1","status":"publish","type":"post","link":"https:\/\/www.highcharts.com\/blog\/tutorials\/five-useful-technical-indicators-part-1\/","title":{"rendered":"Five useful technical indicators (Part 1)"},"content":{"rendered":"

 
\nIn my previous article, I shared with you the 7 popular technical indicators<\/a>. In this article, I will go through five technical indicators that are very useful for trading and how you can create them with the Highcharts Stock library:<\/p>\n

    \n
  1. On-Balance Volume (OBV)<\/li>\n
  2. Disparity Index<\/li>\n
  3. Directional Movement Index (DMI)<\/li>\n
  4. Klinger Oscillator<\/li>\n
  5. Chande Momentum Oscillator (CMO)<\/li>\n<\/ol>\n

    For the sake of simplicity, this subject is divided into two articles. This article is about the two first technical indicators: On-Balance Volume (OBV) and Disparity Index. In the next article<\/a>, I will cover Directional Movement Index (DMI), Klinger Oscillator, and Chande Momentum Oscillator (CMO).<\/p>\n

    Let\u2019s get started<\/p>\n

    On-Balance Volume (OBV) <\/h2>\n

    On-Balance Volume, or OBV for short, is a technical trading momentum indicator that relies on volume flow to forecast stock prices\u2019 change. In a nutshell, the On-balance Volume indicator helps traders to predict the price movement based on the volume.
    \nThe On-Balance Volume graph is calculated based on the following rules:<\/p>\n

      \n
    1. If a bar’s closing price is higher than the previous bar\u2019s closing price, their volumes are summed together.<\/li>\n
    2. If a bar’s closing price is lower than the previous bar\u2019s closing price, their volumes are subtracted.<\/li>\n
    3. If the closing price of a bar is equal to the previous bar\u2019s closing price, the volume remains the same. <\/li>\n<\/ol>\n