What is the meaning of On-Balance Volume?

Plotted as a line representing the cumulative total of volume. The volume from a day's trading with a higher close when compared with the previous day is assigned a positive value, while volume on a lower close from the previous day is assigned a negative value. Traders look for a confirmation of a trend in OBV with the market or a divergence between the two as an indication of a potential reversal.

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APABarry Goldsmith. (2010). on-balance volume. Retrieved September 23, 2026, from http://smartdefine.org/on-balance_volume/definitions/1159623
ChicagoBarry Goldsmith. 2010. "on-balance volume" http://smartdefine.org/on-balance_volume/definitions/1159623 (accessed September 23, 2026).
HarvardBarry Goldsmith 2010, on-balance volume, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/on-balance_volume/definitions/1159623>.
MLABarry Goldsmith. "on-balance volume" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/on-balance_volume/definitions/1159623>