On-Balance Volume Indicator

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The On-Balance Volume indicator was created by Joe Granville, and is used to measure the cumulative volume of buying or selling pressure.

Granville based the concept on the idea that volume often precedes price in financial markets, earning it the nickname the “smart money indicator.” Volume can signal when large wealth whales are taking positions before the rest of the herd.

The smart money traders take positions slowly and carefully to prevent a breakout in price action from happening. As they do so, OBV shows an increase ahead of the eventual breakout, as is shown above ahead of Bitcoin’s historic bull market.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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