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Miha Kralj
2026-02-27 07:48:12 -08:00
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# OBV: On Balance Volume
| Property | Value |
| ---------------- | -------------------------------- |
| **Category** | Volume |
| **Inputs** | OHLCV bar (TBar) |
| **Parameters** | None |
| **Outputs** | Single series (OBV) |
| **Output range** | Unbounded |
| **Warmup** | `> 2` bars |
### TL;DR
- On Balance Volume distills the relationship between price and volume into a single cumulative indicator.
- No configurable parameters; computation is stateless per bar.
- Output range: Unbounded.
- Requires `> 2` bars of warmup before first valid output (IsHot = true).
- Validated against TA-Lib, Skender, and Tulip reference implementations where available.
> "Volume is the fuel that drives price." — Joseph Granville
On Balance Volume distills the relationship between price and volume into a single cumulative indicator. The premise is elegantly simple: volume flows into a security when it closes higher, and flows out when it closes lower. OBV tracks this flow as a running total, creating a momentum indicator that often leads price movements.
@@ -180,4 +197,4 @@ The slope of OBV indicates buying/selling intensity:
- Murphy, J. (1999). *Technical Analysis of the Financial Markets*. New York Institute of Finance.
- Investopedia. "On-Balance Volume (OBV)." [Definition](https://www.investopedia.com/terms/o/onbalancevolume.asp)
- StockCharts. "On Balance Volume (OBV)." [Technical Indicators](https://school.stockcharts.com/doku.php?id=technical_indicators:on_balance_volume_obv)
- TradingView. "PineScript ta.obv()." [Reference](https://www.tradingview.com/pine-script-reference/v5/#fun_ta{dot}obv)
- TradingView. "PineScript ta.obv()." [Reference](https://www.tradingview.com/pine-script-reference/v5/#fun_ta{dot}obv)