On Balance Volume (OBV)

The On Balance Volume chart study highlights the relationship between volume and price change to detect a security's momentum. By comparing a security's current-day trading volume to its running volume total, the OBV chart study is used to determine momentum by indicating whether a large number of buyers are accumulating shares or a large number of sellers are releasing shares.

If the current day's closing price for a security is greater than the previous day's closing price, the following calculation will be used: OBV = Yesterday's OBV + Today's Volume.

If the current day's closing price for a security is less than the previous day's closing price, the following calculation will be used: OBV = Yesterday's OBV - Today's Volume.