On Balance VolumeOn Balance Volume, is the running cumulative total of the volumes in each upwards moving period minus the volume in each downward moving period.
Because it is the cumulative the absolute value of the On Balance Volume depends on where you start.
If the price is trapping in a range, rising OBV suggests a upwards breakout, while falling OBV suggests a downwards breakout.
In a market that is trending upwards (downwards), watch out for successively lower (higher) peaks of OBV, as such a divergence often indicates that the trend is due to end.
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