On Balance Volume Technical Indicator (OBV) is a momentum technical indicator that relates volume to price change. · The basic assumption, regarding On ...MetaTrader 5HelpMetaTrader5Help→PriceCharts,TechnicalandFundamentalAnalysis→TechnicalIndicators→VolumeIndicators→OnBalanceVolumeAccumulation/DistributionMoneyFlowIndexOnBalanceVolumeVolumesOnBalanceVolumeOnBalanceVolumeTechnicalIndicator(OBV)isamomentumtechnicalindicatorthatrelatesvolumetopricechange.Theindicator,whichJosephGranvillecameupwith,isprettysimple.Iftheclosepriceofthecurrentbarishigherthanthatofthepreviousbar,thevolumeofthecurrentbarisaddedtothepreviousOBV.Ifthecurrentbarclosepriceislowerthanofthepreviousone,thecurrentvolumeissubtractedfromthepreviousOBV.Thebasicassumption,regardingOnBalanceVolumeanalysis,isthatOBVchangesprecedepricechanges.ThetheoryisthatsmartmoneycanbeseenflowingintothesecuritybyarisingOBV.Whenthepublicthenmovesintothesecurity,boththesecurityandtheOnBalanceVolumewillsurgeahead.Ifthesecurity’spricemovementprecedesOBVmovement,a"non-confirmation"hasoccurred.Non-confirmationscanoccuratbullmarkettops(whenthesecurityriseswithout,orbefore,theOBV)oratbearmarketbottoms(whenthesecurityfallswithout,orbefore,theOnBalanceVolumeTechnicalIndicator).TheOBVisinarisingtrendwheneachnewpeakishigherthanthepreviouspeakandeachnewtroughishigherthantheprevioustrough.Likewise,theOnBalanceVolumeisinafallingtrendwheneachsuccessivepeakislowerthanthepreviouspeakandeachsuccessivetroughislowerthantheprevioustrough.WhentheOBVismovingsidewaysandisnotmakingsuccessivehighsandlows,itisinadoubtfultrend.Onceatrendisestablished,itremainsinforceuntilitisbroken.TherearetwowaysinwhichtheOnBalanceVolumetrendcanbebroken.Thefirstoccurswhenthetrendchangesfromarisingtrendtoafallingtrend,orfromafallingtrendtoarisingtrend.ThesecondwaytheOBVtrendcanbebrokenisifthetrendchangestoadoubtfultrendandremainsdoubtfulformorethanthreedays.Thus,ifthesecuritychangesfromarisingtrendtoadoubtfultrendandremainsdoubtfulforonlytwodaysbeforechangingback