This shows you the differences between two versions of the page.
| Both sides previous revision Previous revision | Next revision Both sides next revision | ||
|
technical_indicators:on_balance_volume_obv [2023/07/09 20:44] jayanthi [Introduction] |
technical_indicators:on_balance_volume_obv [2023/07/09 20:44] jayanthi [Calculation] |
||
|---|---|---|---|
| Line 7: | Line 7: | ||
| OBV was originally developed by Joe Granville, and he first explained it in his 1963 book //Granville's New Key to Stock Market Profits//. The OBV is noteworthy because it was among the earliest metrics to track the inflow and outflow of volume. By comparing the OBV with price action, analysts can detect divergences that may forecast future price shifts, or they can use the OBV to confirm existing price trends. | OBV was originally developed by Joe Granville, and he first explained it in his 1963 book //Granville's New Key to Stock Market Profits//. The OBV is noteworthy because it was among the earliest metrics to track the inflow and outflow of volume. By comparing the OBV with price action, analysts can detect divergences that may forecast future price shifts, or they can use the OBV to confirm existing price trends. | ||
| - | ===== Calculation ===== | + | ===== How Is OBV Calculated? ===== |
| The On Balance Volume (OBV) line is simply a running total of positive and negative volume. A period's volume is positive when the close is above the prior close and is negative when the close is below the prior close. | The On Balance Volume (OBV) line is simply a running total of positive and negative volume. A period's volume is positive when the close is above the prior close and is negative when the close is below the prior close. | ||