When the security closes lower than its previous close, all of the day’s volume is considered down-volume.įor example, a negative day with 10,00,000 volume is not as significant if the next up day has 50,00,000 in volume. When the security closes higher than its previous close, all of the day’s volume is considered up-volume.
It is a pure momentum oscillator, such as RSI, whereas pattern analysis can be combined with OBV to increase signal robustness.Ĭonstruction of OBV IndicatorOn Balance Volume (OBV) measures buying and selling pressure as a cumulative indicator that adds volume on up-days and subtracts volume on down days. The OBV is primarily traded on stocks as well as indices, commodities and Forex. OBV measures buying and selling pressure as a cumulative indicator that adds volume on up-days and subtracts volume on down-days. Nifty must move above 15,270 for next leg of upside, here are 3 buy ideas for short term
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