On Balance Volume (OBV) is a running total that adds the period's volume on up-closes and subtracts it on down-closes. It turns volume into a single cumulative line that tracks buying and selling pressure.
How traders use it
- A rising OBV confirms that volume supports an uptrend.
- Divergence between OBV and price warns the move lacks participation.
- Breakouts in OBV can lead breakouts in price.
See it in dtcharts
Add OBV from the indicators panel in the dtcharts terminal, or grab ready-to-paste code for MetaTrader, TradeStation and TradingView in the OBV Traders' Tips article.