Compact mode

On-Balance Volume (OBV)

Known for Volume Precedes Price Movement

Table of content

General Information
Characteristics
Facts

Application
Technical Details
Usage
Evaluation
Performance Metrics
Alternatives
FAQ

General Information

Indicator Type 📊

The category or classification of the trading indicator based on its primary function and analysis method.

Volume

On-Balance Volume (OBV) is a Volume type indicator. Indicators that analyze trading volume to confirm price movements
Asset Class 💰

Specifies the financial instruments for which the indicator is most commonly used

Stocks

The asset classes On-Balance Volume (OBV) is typically used for are Stocks. Indicators optimized for analyzing and predicting stock price movements in equity markets. Click to see all.

Cryptocurrencies

The asset classes On-Balance Volume (OBV) is typically used for are Cryptocurrencies. Indicators tailored for the volatile and 24/7 nature of cryptocurrency trading. Click to see all.
Made In 🌍

The country or origin of the trading indicator

1963

On-Balance Volume (OBV) was developed in 1963. Trading indicators specifically created in 1963

Characteristics

Lagging or Leading 🏁

Indicates whether the trading indicator is a lagging or leading type, reflecting its predictive nature.

Leading

On-Balance Volume (OBV) is a Leading indicator. Indicators that predict future price movements Click to see all.
Complexity Level 🧑

Indicates the level of expertise required to effectively use the indicator

Beginner

The complexity level of On-Balance Volume (OBV) is Beginner. Simple and easy-to-understand indicators suitable for novice traders. Click to see all.
Popularity 🏆

Indicates how widely used and recognized the indicator is in the trading community

Medium

The popularity of On-Balance Volume (OBV) among traders is considered Medium. Indicators with balanced adoption and potential effectiveness

Facts

Interesting Fact 💡

An intriguing or lesser-known fact about the trading indicator

Developed by Joe Granville
Sarcastic Fact 😉

A humorous or ironic observation about the trading indicator

It's the gossip column of indicators - always trying to predict the next big move

Application

Timeframe 🕑

The time intervals or periods for which the trading indicator is most effective or commonly used.

Daily

On-Balance Volume (OBV) is most effective for Daily timeframes. Indicators optimized for daily chart analysis, suitable for swing and position traders.

Technical Details

Calculation Method 🧮

The mathematical or analytical approach used to compute the trading indicator's values.

Price-Based

On-Balance Volume (OBV) uses the Price-Based calculation method. Indicators focusing on price movements and patterns for market analysis. Click to see all.
Signal Generation 📊

Describes the methods by which the indicator produces trading signals

Divergences

On-Balance Volume (OBV) generates trading signals through Divergences. Indicators that show discrepancies between price and indicator movements, suggesting potential reversals
Customization Options 🔧

Lists the parameters that can be adjusted to fine-tune the indicator

Period

On-Balance Volume (OBV) offers customization options for Period. Enables customization of analysis timeframe Click to see all.

Usage

For whom 👥

The target audience or user group for the trading indicator

Volume Analysts

On-Balance Volume (OBV) is designed for Volume Analysts. Focuses on trading volume patterns and anomalies, crucial for volume-based analysis Click to see all.
Purpose 📈

The primary purpose or application of the trading indicator

Volume Trend Confirmation

On-Balance Volume (OBV) is primarily used for Volume Trend Confirmation. Tools that validate price trends using volume data Click to see all.

Evaluation

Pros 👍

Advantages of using the trading indicator

Simple To Calculate

Confirms Price Trends
Cons 👎

Disadvantages or limitations of the trading indicator

Can Be Affected By Large Block Trades

Performance Metrics

Reliability Score 💯

A score indicating the overall reliability of the trading indicator

7

The reliability score of On-Balance Volume (OBV) is 7 out of 10. Click to see all.
Ease of Use Score 💻

A score representing how user-friendly and intuitive the trading indicator is

8.5

The ease of use score for On-Balance Volume (OBV) is 8.5 out of 10. Click to see all.
Versatility Score 🔀

A score indicating the adaptability of the trading indicator across different markets and timeframes

6.5

The versatility score of On-Balance Volume (OBV) is 6.5 out of 10. Click to see all.
Customization Score 🔧

A score representing the degree of customization available for the trading indicator

5.5

The customization score for On-Balance Volume (OBV) is 5.5 out of 10.
Score ⭐

The overall score of the trading indicator based on various performance metrics

6.9

The overall score of On-Balance Volume (OBV) is 6.9 out of 10. Click to see all.

Alternatives to On-Balance Volume (OBV)

Accumulation/Distribution Line (A/D)

Known for Volume-Based Price Trends

🔀 is more versatile than On-Balance Volume (OBV)

🔧 is more customizable than On-Balance Volume (OBV)

⭐ is rated higher overall than On-Balance Volume (OBV)

Momentum Indicator

Known for Price Velocity

🔀 is more versatile than On-Balance Volume (OBV)

🔧 is more customizable than On-Balance Volume (OBV)

⭐ is rated higher overall than On-Balance Volume (OBV)

Supertrend Indicator

Known for Simplifying Trend Following

💯 is more reliable than On-Balance Volume (OBV)

⭐ is rated higher overall than On-Balance Volume (OBV)

Rate Of Change (ROC)

Known for Speed Of Price Changes

💯 is more reliable than On-Balance Volume (OBV)

💻 is easier to use than On-Balance Volume (OBV)

🔀 is more versatile than On-Balance Volume (OBV)

🔧 is more customizable than On-Balance Volume (OBV)

⭐ is rated higher overall than On-Balance Volume (OBV)

Percentage Price Oscillator (PPO)

Known for Relative Strength Measurement

🔀 is more versatile than On-Balance Volume (OBV)

🔧 is more customizable than On-Balance Volume (OBV)

⭐ is rated higher overall than On-Balance Volume (OBV)

Known for Range-Bound Trading

💯 is more reliable than On-Balance Volume (OBV)

💻 is easier to use than On-Balance Volume (OBV)

⭐ is rated higher overall than On-Balance Volume (OBV)

Linear Regression Indicator

Known for Predicting Price Trends

💯 is more reliable than On-Balance Volume (OBV)

🔀 is more versatile than On-Balance Volume (OBV)

🔧 is more customizable than On-Balance Volume (OBV)

Elder Impulse System

Known for Combining Trend And Momentum

🔧 is more customizable than On-Balance Volume (OBV)

Chaikin Oscillator

Known for Accumulation/Distribution Trends

💯 is more reliable than On-Balance Volume (OBV)

🔀 is more versatile than On-Balance Volume (OBV)

🔧 is more customizable than On-Balance Volume (OBV)

⭐ is rated higher overall than On-Balance Volume (OBV)

Money Flow Index (MFI)

Known for Volume And Price Movements

💯 is more reliable than On-Balance Volume (OBV)

🔀 is more versatile than On-Balance Volume (OBV)

🔧 is more customizable than On-Balance Volume (OBV)

⭐ is rated higher overall than On-Balance Volume (OBV)

FAQ about On-Balance Volume (OBV)