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Novice Traders' Notebook  |  MAY 2003

Novice Trader’s Notebook by Amy Wu

Novice Trader’s Notebook by Amy Wu ON-BALANCE VOLUME First developed by Joe Granville and published in his text New Strategy Of Daily Stock Market Timing For Maximum Profits, on-balance volume (OBV) is a momentum indicator that relates volume to price change. Specifically, the on-balance volume keeps tabs on the running total of volume that is flowing in and out of a security. For instance, if the price of a security closes higher than the close of the previous day, it’s up volume. Likewise, when the security’s price closes lower than the previous day, it’s down volume.

by Amy Wu

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