On-Balance Volume

In technical analysis, a measure of the amount of money going into or out of a given security. It is calculated by comparing a security's volume to its price over a given time. Technical analysts use on-balance volume to determine a security's momentum. A change in the on-balance volume indicates a coming change in the security's overall trend.

on-balance volume

A measure of volume distinguished as to whether trades take place on rising prices or on falling prices. Technical analysts consider great volume on rising prices bullish because it indicates the possibility that large traders are accumulating investment positions in a security. Conversely, the technicians consider greater volume on falling prices bearish.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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accumulation area

References in periodicals archive

Joe became famous for developing the technical indicator 'On-Balance Volume,' which all Tech Analysts are familiar.

My stock market mentor

Some of the indicators I use are RSI (Relative Strength Index), Stochastics, OBV(On-Balance Volume), various volume patterns, positive and negative divergences, Fibonacci Retracements and my secret weapon, the '10 minute game'; a proprietary technique."

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