Indicator - OBV - On Balance Volume

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Definition OBV - On Balance Volume



The OBV adds up all the previous days' volumes where prices closed higher than the previous day, subtracts all the previous days' volumes where prices closed lower than the previous day.
It remains unchanged when the closing price doesn't change relative to the previous close.

Interpretation OBV - On Balance Volume



OBV gives good divergence signals.
A bullish divergence occurs when the stock price makes new lows while the OBV fails to make new lows.
A bearish divergence occurs when the stock price makes new highs while the OBV fails to make new highs.

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