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Glossary · Pro tools

On-balance volume

A running total that adds the day’s volume when the price rises and subtracts it when it falls.

Why it matters

The idea is that volume moves before price: steady buying shows up in OBV before the price breaks out.

How to read it

Look at its direction, not its number. OBV making new highs with the price confirms the move; OBV falling while the price rises is a warning.

Also called: OBV

Related

VolumeHow many shares changed hands during a day.Money Flow IndexRSI that also counts volume, from 0 to 100.Chaikin Money FlowWhether a stock closes near its daily highs (buying) or lows (selling), weighted by volume, over 20 days.

In the Cluenex app, this explanation opens next to every on-balance volume figure, with the live reading for the stock you are looking at. Open it in Cluenex