What is On-balance（OBV Volume and how it works

Trading volume dynamics are essential when making investment or trading decisions, This is because an asset's volume reflects its market demand. In terms of trading the On-Balance Indicator helps you to analyze changes in trading volume, whether it is forex or cryptocurrency or their derivatives.

What is On-balance volume (OBV)?

The on-balance volume is a technical analysis indicator which shows the direction of price movements using trading volume. It uses the increase or decrease in trade volume of an asset to predict the possible direction of its price. Essentially, it tracks the change in trade volume of an asset within a period, especially 24 hours.

Joseph Granville developed this trading technical tool during the 1960s. In fact, he wrote about it in?Granville’s New Key to Stock Market Profits in 1963.?Traders can use it to analyze stock, commodities and cryptocurrency price movements. The OBV uses cumulative volume figures to gauge an asset’s buying and selling pressure in the market.

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