Trading OBV (On-Balance Volume) is a simple yet powerful way to read what volume says about price trends.

Trading OBV (On-Balance Volume) is a simple yet powerful way to read what volume says about price trends. OBV cumulates volume by adding it on up days and subtracting it on down days, creating a line that helps you see whether buyers or sellers are truly in control. When price makes a new high but OBV fails to confirm, that bearish divergence can warn of exhaustion; when OBV pushes to a higher high ahead of price, it often foreshadows a breakout. Traders use OBV to confirm trend direction, validate support and resistance breaks, and improve timing alongside moving averages or momentum tools. Because it focuses on commitment behind price, OBV can filter false moves and add confidence to entries, exits, and risk placement. Whether you trade stocks, crypto, ETFs, or futures, learning to read OBV can sharpen your edge with objective, volume-driven insight. Use it on multiple timeframes and always pair signals with sound risk management.

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