Volume Indicators
On-Balance Volume (OBV)
On Balance Volume
Deep Dive
Everything You Need to Know
Under the Hood
How It Works
If the close is higher than the previous close, the period's volume is added to OBV. If lower, it is subtracted. OBV direction matters more than its absolute value.
In Practice
How Traders Use It
Rising OBV confirms an uptrend; falling OBV confirms a downtrend. Divergences between OBV and price often precede price reversals.
Highlights
OBV at a Glance
- Cumulative volume indicator
- Rising OBV = buying pressure
- Falling OBV = selling pressure
- Divergences signal reversals
- Leading indicator for price
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FAQ
Frequently Asked Questions
What is the On-Balance Volume (OBV) indicator?
On Balance Volume
How does OBV work?
If the close is higher than the previous close, the period's volume is added to OBV. If lower, it is subtracted. OBV direction matters more than its absolute value.
How do traders use OBV in their strategies?
Rising OBV confirms an uptrend; falling OBV confirms a downtrend. Divergences between OBV and price often precede price reversals.
What are the key points to know about OBV?
Cumulative volume indicator Rising OBV = buying pressure Falling OBV = selling pressure Divergences signal reversals Leading indicator for price
Can I use OBV with Cryptorobot.ai?
Yes. On-Balance Volume (OBV) is available as a built-in indicator in Cryptorobot.ai. You can add it to any automated strategy using the no-code strategy builder, backtest it against historical data, and deploy it live on supported exchanges.