---
title: "Definition of OBV"
url: https://signalscreener.fr/definition/obv/
markdown_url: https://signalscreener.fr/definition/obv.md
description: "A cumulative indicator that adds volume on up days and subtracts volume on down days to show buying/selling pressure."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "OBV"
  - "On-Balance Volume"
translations:
  de: https://signalscreener.fr/de/definition/obv.md
  es: https://signalscreener.fr/es/definition/obv.md
  fr: https://signalscreener.fr/fr/definition/obv.md
  it: https://signalscreener.fr/it/definition/obv.md
  pt: https://signalscreener.fr/pt/definition/obv.md
---

# On-Balance Volume

## What is OBV?

A cumulative indicator that adds volume on up days and subtracts volume on down days to show buying/selling pressure.

## Think of it like this

Like keeping a running score where you add points when the home team scores and subtract when visitors score.

## Formula

```
OBV = Previous OBV ± Today's Volume (based on price direction)
```

- **Up Day**: Add volume when close > previous close
- **Down Day**: Subtract volume when close < previous close

## Why it matters

- Shows if volume confirms price trends
- Rising OBV with rising price = strong trend
- Divergences can predict reversals
- Volume precedes price

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| Rising OBV + Rising Price | Bullish Confirmation | Strong uptrend, buyers in control |
| Falling OBV + Falling Price | Bearish Confirmation | Strong downtrend, sellers in control |
| Rising OBV + Flat Price | Accumulation | Smart money buying, breakout may come |
| Falling OBV + Flat Price | Distribution | Smart money selling, breakdown may come |

## Real-world example

If price makes new high but OBV doesn't, it's a bearish divergence warning of potential reversal.

---

This is educational content, not financial advice.

Source: [Definition of OBV](https://signalscreener.fr/definition/obv/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

All definitions in this language as Markdown: https://signalscreener.fr/definition/llms.txt
Human index: https://signalscreener.fr/definition/
Site overview for agents: https://signalscreener.fr/llms.txt