On-Balance Volume (OBV) - Forex Glossary | ForexCracked
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Indicators & Analysis Intermediate

On-Balance Volume (OBV)

Also called: on balance volume

Cumulative volume indicator — adds volume on up-closes and subtracts on down-closes to measure buying/selling pressure.

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Definition

OBV (Joe Granville, 1963) tracks the running sum of volume, flipping sign with each close. Rising OBV with rising price confirms the trend; falling OBV with rising price warns of weakness.

Mostly used as a divergence tool. In FX, tick volume substitutes for true volume.