On-Balance Volume (OBV)
Also called: OBV
A cumulative volume line that adds volume on up days and subtracts it on down days — a running tally of buying vs selling pressure.
Created by Joe Granville, OBV adds the day's volume to a running total when price closes up and subtracts it when price closes down. The absolute number doesn't matter; the direction does. A rising OBV says volume is flowing into up days (accumulation); a falling OBV says it's flowing into down days (distribution).
OBV is most useful for confirmation and divergence: OBV making new highs with price confirms a move, while OBV stalling or falling as price rises warns the advance lacks volume support.
On StockSetups
StockSetups tracks the OBV trend as a screener field, so you can require accumulation — a rising OBV — behind a breakout instead of taking the price move at face value.
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