On Balance Volume (OBV) is a technical trading momentum indicator that uses volume flow to predict changes in stock price. It was developed by Joseph Granville and introduced in his 1963 book Granville’s New Key to Stock Market Profits. OBV measures buying and selling pressure as a cumulative indicator, adding volume on up days and subtracting it on down days. It provides a running total of an asset’s trading volume and indicates whether this volume is flowing in or out of a given security or currency pair. The OBV is a cumulative total of volume (positive and negative). OBV is used to confirm price trends and warn of potential price reversals. It is used to identify divergences between OBV and price to predict price movements.
Have any questions or suggestions? Please contact us using our Online Ticket System.
Are you interested in making contributions to our platform? Join in our W3Data Creator Team.
Disclaimer: Megapro provides data solely for educational or informational purposes. All investment strategies and investments involve the risk of loss. Nothing contained in this website should be construed as investment advice. Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. Any decisions or actions based on the information presented here are done at your own risk and discretion.