On-Balance Volume (OBV)
On-balance volume: a running total of volume, added on up closes and subtracted on down closes, to see whether volume confirms the trend.
How to read it
- OBV rising with price confirms the uptrend; falling with price confirms the downtrend.
- OBV breaking out before price can lead the move.
- Divergence between OBV and price warns of weak participation.
Key settings
- No period input; line colour and width only.
Good to know
- Drawn in its own pane below the chart.
- Read the direction, not the absolute value.