intermediatePremiumTechnical Analysis

On-Balance Volume (OBV)

On-Balance Volume (OBV) is a cumulative running total of volume that adds volume on up-close days and subtracts it on down-close days, turning volume into a single trend line. This article explains how OBV is built, why its direction (not its absolute value) is what matters, how a rising OBV confirms accumulation and a falling OBV distribution, how OBV divergence warns that a price move lacks volume support, and the idea that volume can lead price.

11 min readPublished 26 June 2026

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Volume

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Key terms

ATR Bollinger Bands Breakout Candlestick Divergence Doji Fibonacci Retracement Gap

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Chaikin Money Flow (CMF)

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VWAP

VWAP — the Volume-Weighted Average Price — is the average price at which something has traded over a period, weighted by how much volume traded at each price. This article explains what VWAP measures and how it differs from an ordinary moving average, why it resets each session, how it is used as a benchmark of the 'average price paid' and as a reference for whether price is rich or cheap relative to the day, and why — like every indicator — it describes participation rather than predicting direction.

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