strategy · on price · open source

OBV Trend Strategy

Deepwick · @deepwickv1Updated 2 Oct 2026▲ 0 users

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About

On-Balance Volume trend strategy: long when OBV has risen over the lookback window (accumulation phase), exit when OBV turns lower.

OBV rising on flat/down prices = stealth accumulation.
Combine with a price trend filter for cleaner entries.
20-period is the canonical OBV trend window.

Source code

//@version=5
strategy("OBV Trend Strategy", overlay=true, initial_capital=10000, default_qty_type=strategy.percent_of_equity, default_qty_value=10, commission_type=strategy.commission.percent, commission_value=0.05)
len = input.int(20, "OBV Lookback", minval=5, maxval=50, step=1)
stopPct = input.float(2, "Stop Loss %", minval=0.5, maxval=10, step=0.1)
tpPct = input.float(6, "Take Profit %", minval=0, maxval=20, step=0.1)
var float obv = 0.0
obv := close > close[1] ? nz(obv[1]) + volume : close < close[1] ? nz(obv[1]) - volume : nz(obv[1])
longSignal = strategy.position_size == 0 and obv > obv[len]
exitSignal = strategy.position_size > 0 and obv < obv[len]
if longSignal
    strategy.entry("Long", strategy.long)
if strategy.position_size > 0
    strategy.exit("Risk", stop=stopPct > 0 ? strategy.position_avg_price * (1 - stopPct / 100) : na, limit=tpPct > 0 ? strategy.position_avg_price * (1 + tpPct / 100) : na)
if exitSignal
    strategy.close("Long", comment="OBV turned")
p_OBV = plot(obv, "OBV", color=color.teal, linewidth=2)
plotshape(longSignal, "Long", style=shape.triangleup, location=location.belowbar, color=color.green, text="L")
plotshape(exitSignal, "Exit", style=shape.triangledown, location=location.abovebar, color=color.red, text="X")
alertcondition(longSignal, "OBV long entry", "OBV rose over the lookback")
alertcondition(exitSignal, "OBV exit", "OBV turned lower")

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