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On Balance Volume Indicator

On Balance Volume (OBV) is an indicator developed by Joe Granville to represent the running total of volume.  It shows whether or not volume is flowing in or out compared to the closing price.  Volume is added to the indicator if closing price moves up and subtracted if closing price moves down.  No adjustment is made if closing price is unchanged.  A rising OBV may be indicative of an upward breakout, where conversely a falling OBV may be indicative of a downward breakout.  On Balance Volume is best used as a confirmation indicator that is used in conjunction with other indicators.

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On Balance Volume Developer Help