On-balance volume (OBV)
A running total of volume, added on up closes and subtracted on down closes.
Formula
OBV = OBVₚᵣₑᵥ + Volume (close up), − Volume (close down), + 0 (unchanged)
How to read it
Its level is arbitrary; its direction matters. OBV rising while price is flat suggests accumulation.
How to use it
Confirms trends and breakouts with volume; a divergence warns of a turn.
In Kereon
Charts · Superchart. Granville's rule: an unchanged close adds nothing.
Also called: on balance, granville.