On-balance volume
Also called: OBV
A running total that adds each session's volume when the close rises and subtracts it when the close falls.
OBV shows whether volume has been heavier on up days or down days. It ignores the size of price moves and cannot show who was buying, because every share bought is also sold, so rising OBV does not prove that informed investors are accumulating.
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- On-balance volumeWhat is on-balance volume, and does it show smart money buying?
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