On Balance Volume

OBV-On Balance Volume Interpretation:

OBV gives good divergence signals. A bullish divergence occurs when the price makes new lows while the OBV fails to make new lows. A bearish divergence occurs when the price makes new highs while the Obv fails to make new highs.

OBV Calculation:

The OBV adds up all the previous days volumes where the prices closed higher than the previous day, subtracts all the previous days volumes where prices closed lower than the previous day. It remains unchanged when the closing price does not change relative to the previous close.

Return from On Balance Volume to Using Indicators

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