Indicator Description

OBV (On Balance Volume) is a volume-based technical indicator that measures the cumulative effect of money flow by accumulating volume on up and down days.

Calculation Principle

OBV is calculated using the following formula:

If today's closing price > yesterday's closing price:
    OBV = yesterday's OBV + today's volume
If today's closing price < yesterday's closing price:
    OBV = yesterday's OBV - today's volume
If today's closing price = yesterday's closing price:
    OBV = yesterday's OBV

Usage Scenarios

1. Money flow analysis
2. Trend confirmation
3. Divergence analysis
4. Support and resistance level judgment

Usage Recommendations

1. Rising OBV indicates increasing money inflow
2. Falling OBV indicates increasing money outflow
3. Watch for divergence between price and OBV
4. Use in conjunction with other indicators