What OBV shows
A running total that adds volume on up candles and subtracts it on down candles.
Indicator guide · Volume and volatility
On-Balance Volume (OBV): what it shows, settings and how to read it.
A running total that adds volume on up candles and subtracts it on down candles.
How it is calculated
A running total: the candle's volume is added when price closes up and subtracted when it closes down.
Usual settings
Nothing to set. Only the direction of the line matters, not its value.
How traders read it
OBV rising while price is flat can show quiet buying before a breakout.
Where it fails
The absolute number means nothing; only its direction matters.
What to combine it with
Price itself: OBV rising while price is flat, or falling while price rises, is the divergence traders look for.
Try OBV on a live chart
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose OBV. Click its name on the chart to change the settings. It is free for every member.
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Questions
Frequently asked questions
What is the OBV indicator?
A running total that adds volume on up candles and subtracts it on down candles.
What are the best settings for OBV?
The usual settings are: Nothing to set. Only the direction of the line matters, not its value. No setting is best in every market, so test a change on past data before relying on it.
Is OBV reliable on its own?
No single indicator is. The absolute number means nothing; only its direction matters. Most traders use it together with: Price itself: OBV rising while price is flat, or falling while price rises, is the divergence traders look for.
How do I add OBV to a chart for free?
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose OBV. Click its name on the chart to change the settings. It is free for every member.
This page is education, not investment advice. Trading involves substantial risk of loss. Read next: Trading indicators · Trading strategies · Candlestick patterns