On Balance Volume can be used to either confirm the current price trend or warn...
This was one of the first and most popular indicators to measure positive and negative volume flow. On Balance Volume line is relatively easy to construct. We first start with a beginning number. It should be relatively high e.g. 50,000. Then, on day one, if the close is positive, that day's volume is added to the 50,000. If the day's close was lower, the volume is subtracted. So on up days, volume is added. And on down days, the volume is subtracted. The result is a fluctuating line. The value of the On Balance Volume is that it generally is a precursor to a change in trend. The holding is that smart money leaves a security first when it is near a top; and also that the smart money is buying when a security is near a low.
OBV is a volume indicator and is, therefore, only used on futures contracts. Joseph Granville developed it in 1963. It assigns the volume for each day a positive or negative value depending on whether the market prices close higher or lower for that day. A higher close from the previous day results in the volume figure for the current day being assigned a plus value, while a lower close from the previous day assigns a negative value. A running cumulative total is then maintained as the market continues to trade. It is the direction of the OBV line that is important and not the actual numbers.
A volume indicator that measures the progress of accumulation-distribution.
See On balance volume (Financial Information Management Inc., USA).
A method used in technical analysis to detect momentum, the calculation relates volume to price change. OBV provides a running total of volume and show if this volume is flowing in or out.
See On Balance Volume (OBV) (Chart School, StockCharts.com, USA)
A price/volume type of indicator where the volume for the period (day, week, etc.) is added to a cumulative total if the price rose, and subtracted if the price fell. No entry is made if the price was unchanged in the period. Developed and popularized by Joseph Granville in the early 1960s.
OBV is a momentum indicator relating volume to price change. If prices rise, volume is considered up-volume; if price, it is considered down-volume. Up-volume is added to the cumulative total, and down-volume is subtracted.
relates price to volume, and tries to capture the buying and selling pressure in the market. It assumes that when a security closes up for the day, the number of shares transacted represent buying power. Conversely, the amount of volume on a down day represents selling power.
Introduced by Joe Granville, OBV measures positive and negative volume flow. The concept behind the indicator is that volume precedes price. OBV is a simple indicator that adds a period's volume when the close is up and subtracts the period's volume when the close is down. A cumulative total of the volume additions and subtractions forms the OBV line. OBV line can then be compared with the price chart of the underlying security to look for divergence or confirmation.
OBV is an indicator that adds a period’s volume to a cumulative total when the close is up and subtracts the period’s volume from the cumulative total when the close is down. The cumulative total is plotted as the OBV line. This line can then be compared with the price chart of the underlying security to look for divergences or confirmation.
Technical Analysis method that tries to pinpoint when a security's shares are being accumulated (being bought) or are being sold. The on balance volume line and the stock price line are placed on one chart. When the two lines cross, the analyst considers it to be meaningful. When the chart indicates that a security is being accumulated, it is considered a buy signal and when being distributed, a sell signal. See: Accumulation; Chartist; Technical Analysis; Volume
On Balance Volume ("OBV") is a momentum indicator that relates volume to price change. It shows if volume is flowing into or out of a security. When the security closes higher than the previous close, all of the day's volume is considered up-volume. When it loses value and consequently ends up lower than the previous close, all of the day's volume is considered down-volume.
