On-Balance Volume (OBV)
OBV is a cumulative volume indicator that adds volume on up days and subtracts on down days. It measures buying/selling pressure and can diverge from price to signal reversals.
- Family
- Volume
- Series
- Single series
- Best timeframes
- H1 · H4 · D1
- Last updated
- 2026-03-21
TL;DR
- OBV is a volume indicator used in technical analysis
- Rising OBV confirms uptrend. Falling OBV confirms downtrend. OBV divergence from price signals potential reversal.
- Best timeframes: H1, H4, D1
- Skip to API docs
What is On-Balance Volume?
OBV is a cumulative volume indicator that adds volume on up days and subtracts on down days. It measures buying/selling pressure and can diverge from price to signal reversals.
How OBV is calculated
If Close > Close(prev): OBV = OBV(prev) + Volume
If Close < Close(prev): OBV = OBV(prev) - Volume
If Close = Close(prev): OBV = OBV(prev)How to interpret OBV
Rising OBV confirms uptrend. Falling OBV confirms downtrend. OBV divergence from price signals potential reversal.
Trading strategies using OBV
Strategy 1: OBV Divergence
Trade when OBV and price diverge, signaling underlying volume-based weakness.
Entry rules
Enter long when price makes lower low but OBV makes higher low (bullish divergence). Reverse for bearish.
Exit rules
Exit when divergence resolves or OBV confirms new price direction.
Combining OBV with other indicators
OBV works best when combined with complementary indicators:
- OBV + MFI: Combine for stronger confluence signals
- OBV + A/D Line: Combine for stronger confluence signals
- OBV + Tick Volume: Combine for stronger confluence signals
OBV across different timeframes
OBV works across all 7 timeframes but performs best on H1, H4, D1 for most trading styles.
Accessing OBV via the TickAtlas API
GET https://tickatlas.com/v1/indicator
Python example
import requests
url = "https://tickatlas.com/v1/indicator"
headers = {"X-API-Key": "YOUR_API_KEY"}
params = {
"symbol": "EURUSD",
"indicator": "OBV",
"timeframe": "H1"
}
response = requests.get(url, headers=headers, params=params)
data = response.json()
print(data)Sample response
{
"success": true,
"data": {
"symbol": "EURUSD",
"indicator": "OBV",
"timeframe": "H1",
"value": 1234567,
"updated_at": 1711548000,
"server_time": "2024-03-27T14:00:00+00:00",
"bid": 1.0856,
"ask": 1.0857
}
}Common mistakes to avoid
- Comparing OBV absolute values between different symbols — only the trend matters
- Ignoring OBV divergence signals which are among the most reliable volume-based signals
Frequently asked questions
Does OBV work with forex tick volume?
Yes, OBV works with tick volume in forex. While tick volume is not true traded volume, it correlates with actual market activity and OBV divergence signals remain valid.
Continue learning
More volume indicators
- Indicator
Money Flow Index (MFI)
MFI is a volume-weighted version of RSI.
Read more - Indicator
Accumulation/Distribution Line (A/D)
The A/D Line measures the cumulative flow of money into and out of a security.
Read more - Indicator
Tick Volume (Tick Vol)
Tick Volume measures the number of price changes (ticks) within a period.
Read more
Put OBV to work in your application.
Sign up with $2.50 of starting credit and query pre-calculated OBV data across 7 timeframes, from M1 to D1.