FTB-C000521 / Indicator

On-Balance Volume

OBV accumulates signed volume according to whether the closing price rose or fell.

Also known asOBV

Intermediate Formula defined 2 linked topicsEvidence-reviewed

Definitions

In plain terms

It is a running volume-unit series: an up close adds the current volume, a down close subtracts it, and an equal close contributes zero.

Technical

For t>0, OBV_t = OBV_(t-1) + sign(C_t-C_(t-1)) V_t, with an explicit zero seed and current-bar volume.

Scope

OBV is directional volume evidence, not a complete model of order flow or a forecast.

Formula

OBV_t = OBV_(t-1) + sign(C_t-C_(t-1)) V_t
LaTeX: OBV_t = OBV_{t-1} + \operatorname{sign}(C_t-C_{t-1})V_t
SymbolMeaningUnit
C_tcurrent closeprice
V_tcurrent volumevolume

Output unit: volume units

Examples

  • A reviewer computes On-Balance Volume from a small OHLCV fixture and checks readiness, units, and edge cases before publication.

Common misconceptions

  • OBV is directional volume evidence, not a complete model of order flow or a forecast.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Evidence and governance

  1. On-Balance Volume (OBV) TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: Does not establish predictive power, trading profitability, or a universal divergence rule.

  2. Volume indicators function group TA-Lib · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: Library compatibility does not by itself prove a project's seed, warm-up, or missing-data policy.

  3. Consolidated Tape Investor.gov · official standard

    Supports: preferred label, short definition, technical definition, formula

    Limits: This glossary does not infer buyer/seller intent or normalize all venue and reporting differences.

  4. Closing Price Investor.gov · official standard

    Supports: preferred label, short definition, technical definition, formula

    Limits: A close is not automatically an adjusted close and may vary by market session convention.

  5. What Is Volume? CME Group · official exchange

    Supports: preferred label, short definition, technical definition, formula

    Limits: Futures contract conventions do not define every equity or digital-asset volume feed.

Reviewed by
fintech-builder-batch-010
Last reviewed
2026-08-01
Next review
2027-08-01
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.