On-Balance Volume (OBV)

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On-Balance Volume (OBV)

What is On-Balance Volume (OBV)?

On Balance Volume (OBV) is a cumulative indicator that adds volume on up days and subtracts volume on down days to quantify the purchasing and selling pressure. All of the trading volumes for the day is regarded as up-volume when the security closes higher than the prior close. All of the day’s volume is regarded as down-volume when the security closes at a lower price than the prior close.

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