On Balance Volume (Indicator)
Disclaimer
Input Information
There are no inputs available for this indicator.
Market Synopsis
The On Balance Volume indicator adds to a running total the volume of each bar with a higher close than the bar before and subtracts from the total the volume of each bar with a lower close. The running total is plotted as a line. The use of both price and volume provides a different perspective from price or volume alone. For example, higher prices with light volume will cause On Balance Volume to rise slowly, possibly indicating that the trend lacks conviction. Because On Balance Volume begins accumulating values from the left of the chart, the numeric value of On Balance Volume will depend on the data available in the chart. Therefore, the relative value, or trend direction, of On Balance Volume is more important than its numeric value.
Plot Information
| Number | Name | Default Color | Description |
| Plot1 | OBV | Yellow | Plots the On Balance Volume. |
When applied to a chart, this indicator displays one plot in a separate subgraph from the price data.