Accumulation / Distribution Versus OBV | Which Indicator is Best?
1,005Accumulation / Distribution is an evolved version of On-Balance Volume. But does this make it a better predictor of future price action? Well, the underlying calculation is based on a more realistic representation of the volume and price action relationship. But of course, simplicity is often better than complexity.
So in this video, a comparison of the indicators is performed on a real chart illustrating how an assessment might be performed. Martyn Tinsley then sets a challenge to viewers to do the same and post their results into the comments of the video. Let's see what the general consensus is...
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This is Episode 74 in the Darwinex 'Algo Trading for a Living' Playlist, and Episode 14 of the new 'Volume Data' mini-series.
Video Contents:
00:00 Introduction
01:16 Comparing Accumulation/Distribution with On-Balance Volume
02:45 OBV Calculation
03:11 Accumulation / Distribution Calculation
05:42 OBV and A/D on a price chart
06:20 Example of differences between A/D and OBV
07:33 Is Accumulation / Distribution better than On-Balance Volume?
08:16 A challenge for YOU...
09:08 Summary and Conclusions
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: https://www.darwinex.com/legal/risk-disclaimer