My Diary.
to Share my Life Events

How On Balance Volume (OBV) may show how money may be flowing into or out of a stock


OBV (On Balance Volume) measures buying and selling pressure. It was develop by Joe Granville in 1963. Joe Granville predict that volume precedes price.

OBV Calculation.

If the closing price is above the prior close price then:
Current OBV = Previous OBV + Current Volume
If the closing price is below the prior close price then:
Current OBV = Previous OBV  -  Current Volume
If the closing prices equals the prior close price then:
Current OBV = Previous OBV (no change)


It is very easy to use OBV. A rising OBV value show positive volume pressure that can lead to higher prices and vice versa.
Admin Admin Author