Cumulative Force, Weighted OBV — Indicator by JeroenHouttuin

Cumulative Force Indicator. Can also be seen as an OBV indicator that takes the price differences into account. In a regular OBV, a high volume bar can make a huge difference, even if the price went up only 0.01, and it it goes down 0.01 instead, that volume makes the OBV go down big time, even though in both cases hardly anything really happened. cForce is a more realistic view on where the money is flowing.

This is my first published script, so feel free to let me know if you see room for improvements.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

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//  Copyright by Playak v1.0 29/01/2015
// Cumulative Force Indicator. Can also be seen as an OBV
// indicator that takes the price differences into account.
// In a regular OBV, a high volume bar can make a huge difference,
// even if the price went up only 0.01, and it it goes down 0.01
// instead, that huge volume makes the OBV go down, even though
// hardly anything really happened.
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study(title="Cumulative Force / Weighted OBV", shorttitle="cForce")
b = input(title="Close relative to open (default is relative to previous close)", type=bool, defval=false)
force = volume * (close - (b ? open: nz(close[1])))
xforce = cum(force)
plot(xforce)