How To Calculate On-Balance Volume (OBV) using Ruby?

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by adolf , in category: General Help , 2 months ago

How To Calculate On-Balance Volume (OBV) using Ruby?

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1 answer

by bobbie.kris , 2 months ago

@adolf 

To calculate the On-Balance Volume (OBV) using Ruby, you can follow these steps:

  1. Create an array of volume data and an array of price change data for a given period. You can get this data from a CSV file, API, or any other source.
  2. Initialize the OBV value to 0.
  3. Iterate through the price change data and volume data arrays simultaneously.
  4. If the price change is positive, add the volume to the OBV value.
  5. If the price change is negative, subtract the volume from the OBV value.
  6. Continue this process until you reach the end of the data.
  7. The final value of OBV will be your calculated OBV for the given period.


Here is an example code snippet in Ruby to calculate the OBV:

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def calculate_obv(prices, volumes)
  obv = 0
  prices.each_with_index do |price, index|
    if index > 0
      if price > prices[index - 1]
        obv += volumes[index]
      elsif price < prices[index - 1]
        obv -= volumes[index]
      end
    end
  end
  return obv
end

# Sample data
prices = [10, 12, 11, 13, 14]
volumes = [1000, 1500, 1200, 2000, 1800]

puts "OBV for the given period is: #{calculate_obv(prices, volumes)}"


This code calculates the OBV based on the price and volume data provided in the sample arrays. You can replace the sample data with your actual data to calculate the OBV for a specific period.