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  1. Home
  2. /Glossary
  3. /On-Balance Volume (OBV)
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On-Balance Volume (OBV)

A technical indicator that uses volume flow to predict price movements.

Definition

A technical indicator that uses volume flow to predict price movements. When OBV is rising while price is flat, it suggests accumulation and a potential breakout. When OBV drops while price stays high, it can signal distribution. It's one of the simplest but most effective volume indicators.

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Related Terms

Trading Volume

The total amount of an asset traded over a period, usually 24 hours.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Technical Analysis

Studying price charts and patterns to predict future movements.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

Ask Price

The lowest price a seller is willing to accept for an asset.

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