Technical
What is OBV (On-Balance Volume)?
A running total that adds the day's full volume on up days and subtracts it on down days — cumulative buying versus selling pressure over time.
Formula
OBV = Prior OBV + Volume (if close up) − Volume (if close down)
How to Interpret
The line's direction matters, not its value. OBV confirming new price highs = healthy participation; OBV flat or falling while price rises = a rally without sponsorship, a classic warning. OBV breakouts sometimes precede price breakouts.
Typical Ranges
The absolute number is meaningless; only shape and divergence carry information. All-or-nothing daily attribution — a barely-up day counts its entire volume as buying.
Find Stocks Using This Signal
Screen US and Indian stocks by OBV in the Technical screener.