What It Is
Cumulative indicator that tracks directional volume pressure over time.
On-Balance Volume (OBV) sits inside Part III - Technical Analysis and should be interpreted with adjacent concepts.
Concept Guide
On-Balance Volume (OBV) explained with practical workflows, risk-aware interpretation, and portfolio-level context.
Cumulative indicator that tracks directional volume pressure over time.
On-Balance Volume (OBV) sits inside Part III - Technical Analysis and should be interpreted with adjacent concepts.
OBV divergence can reveal accumulation or distribution before price confirms.
1. Monitor OBV trend versus price trend for confirmation.
2. Use divergence as a warning, not a standalone trigger.
3. Combine with support or resistance structure.
Overreacting to short-term OBV noise in low-liquidity names.
Concept FAQs
It is most useful when combined with complementary concepts from the same cluster and explicit risk controls.
Avoid one-metric decisions. Confirm with at least one independent signal and pre-define sizing and invalidation rules.