ClearPath Trader

OBV (On Balance Volume)

Cumulative volume added on up closes and subtracted on down closes. Confirms trends or warns via price/OBV divergence.

Category: Volume · Complexity: ★★★☆☆ (3/5)

Tags: volume, live-overlay, volume

Live chart overlay: OBV

OBV (On Balance Volume) chart illustration

Formula

OBV_t = OBV_{t-1} + V if C↑; −V if C↓; 0 if unchanged

How to read

Rising OBV with rising price confirms. Price up / OBV flat or down is a divergence warning.

Limitations

Uses all volume on the close direction — crude. Needs clean volume data.

Typical settings

Cumulative; optional SMA smooth

OBV (On Balance Volume) is part of the ClearPath Encyclopedia of Indicators — 190 models explained with standard SVG illustrations, so you can study an indicator before you put it on a live chart.

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