On Balance Volume

On balance volume is a technical indicator in technical analysis that takes both volume and share price into account. On balance volume is a value calculated by adding the volume of the days when the share price is up and subtract the volume of the days when the share price is down.

On balance volume is a technical indicator to confirm a rise in a share price. A stock in a rising trend should be confirmed by a rising trend in on balance volume for the upward trend to be considered healthy. On balance volume can also be a leading indicator for equity prices.