OBV — On-Balance Volume Explained

OBV keeps a running total: add volume on up days, subtract on down days. One line that shows whether money is flowing in or out.

Level by level

Beginner

If price is flat but OBV is climbing, someone is quietly accumulating — a classic early tell.

Intermediate

OBV divergence (price new high, OBV lower high) questions the rally's fuel. Trendlines drawn ON OBV often break before price's do.

Advanced

OBV is binary and crude (all volume gets one sign per day) — that's also why it's robust. Granville designed it exactly for the divergence use-case.

Common mistakes

• Reading OBV's absolute number (meaningless) instead of its direction
• Ignoring gaps and news that distort a single day's volume

Practise & tools

• Free calculators & trading journal
• Structured lessons in the Learning Hub
• Daily Chart Challenge

_Educational content only — not financial advice. Historical behaviour never guarantees future results._