On Balance Volume: What It Is and How to Use It 🙌

✅ Please like, subscribe & comment if you enjoyed - it helps a lot!

✅ Our channel sponsor for this month are Trade Nation meaning these guys are covering our costs of operation. We only accept reputable and properly regulated providers as sponsors. Please support us by trading with this provider. Trade Nation offer the popular MT4 platform as well as an easy-to-use web trading platform with fixed spreads.

📜 Disclaimer 📜

81.7% of retail investors lose money when trading CFDs and spread betting with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

[ukspreadbetting]

👉 We are seeking more contributors who can produce great video educational content about trading for our channel. If you think you have what it takes please get in touch by sending a message to (remove the AT and substitute by @).
👉 It seems a lot of our viewers are non-subscribers. Make sure to subscribe to our youtube channel as we upload regular videos! If you hit the “Bell” icon (🔔) you will receive a notification on youtube every time that we upload a video on our channel. Bell icon hitters are super fans of our channel 🥰

[bostdgst]

This indicator is phenomenal with rsi levels on the same window, especially the 4hr and daily. Good little trick to have up your sleeve

[hackdaddie]

At first I thought I was watching Jim from 'The office' give an investing tutorial lol

[superlead]

OBV has so far served me well, confirming or not confirming an uptrend and just in general comparing OBV with share price highs and lows.

[momentum]

thanks for the explanation of the OBV. I have had so much trouble with volume that i never used it on my charts. I tried to use the volume bars but I could not see any edge. The OBV on the other hand makes sense to me. Now I have a way to CONFIRM Price. Now I can use Volume as a confirmation of price. Thanks!

[edgarkretschmann]

Hey Mark,


I didn't quite get it, but with other sources I put this together. Maybe this helps other people too:



ON BALANCE VOLUME

Volume means market participation.
when there is little market participation - that is little volume - it doesn't mean that there is neccesserily little price change. Say there is a 10% price change but only a relatively low amount of volume, then OBV won't rise since its main utility is to show us strong market participation. Why is this important? Because it can show us that something is changing based on a mutual price agreement amongst many people. If the price is manipulated by few, OBV can show us that, hence aniticipating a diversion.
This all, is of course based on the theory, that volume precedes price. Which is sometimes true and sometimes not.

[thomaswagner]

The takeaway is that OBV may be employed to confirm the direction of a price movement in the past. Thanks for the video.

[keiths.heather]

One of my favorite indicator for divergence

[Ivankabanov-uv]

I have no idea about Trading and this my first day to learn Trading and this is the first video I watched in the world of trading. Nice to meet you here

[tomrowe]

Add trendlines in your obv and on your graph. Shows better action

[AntranikDotOrg]

I find volume to be so important and OBV is a little tricky to understand but you did an excellent job as usual describing it. Thank you! Please make more videos on volume indicators and which ones you think are the best!

[MrTcp]

yeah but easy to see in hindsight.. try doing it live when you think the obv is moving then shifts back...to fake you out

[writetravis]

Your YouTube videos are extremely well done. If I have a question about indicators or strategy I search out your content because I know I will get a factual account without bias or sales pressure. Please keep up the good work.

[SetayshShakori]

This info is really useful for a beginner and intermediate traders. Thank you for making it

[sund]

Top video. Not too long. Not to short. Straight to the point. No bullshit. Keep doing that :-)

[Mrtompie]

OBV Talks for itself on GME atm.. Thanks a lot!

[innuendo]

Great explanation, with examples - that's what's needed for beginners. Thank you so much!!

[moniquesdiary]

Dear Sir! What chart is it best to read OBV on - 1 min, 4 hour, ... daily...weekly? OBV looks different on different chats...

[Thetaleswithin]

Thank you ao much for this amazing video. This helps a lot.

[JosePintok]

Thank you for the explanation, very well explained. The only doubt I have is if it can be used in all timeframes or if it particularly suits a specific timeframe, like the 4H