Charting
and Historical Backtesting Software by Ashkon Technology LLC
On Balance Volume (OBV)
Interpretation:
Once a trend in on balance volume (OBV) has been established it remains in
force until it is broken.
OBV breakouts usually preceed price breakouts.
Buy long on a positive OBV breakout and sell short on a negative OBV
breakout.
On Balance Volume (OBV)
Calculation:
On Balance Volume (OBV) Notes:
OBV is in a rising trend when each new high is higher than the
previous one and each new low is higher than the previous one
OBV is in a downward trend when each hew high is lower than the previous
high and each new low is lower than a previous one.
