OBV (On-Balance Volume)
Volume Indicator
OBV (On-Balance Volume)
OBV uses volume flow to predict changes in stock price.
Overview
On-Balance Volume is a cumulative indicator that adds volume on up days and subtracts volume on down days. When OBV is rising, it shows that buyers are willing to step in, and when it's falling, selling volume is outpacing buying volume.
Use Case
Best for confirming price trends and predicting potential breakouts.
Calculation
If Close > Previous Close: OBV = Previous OBV + Volume; If Close < Previous Close: OBV = Previous OBV - Volume