Average balance volume

On-Balance Volume (OBV) is a volume-based momentum indicator that tracks cumulative buying and selling pressure by adding the day's volume when the price closes higher and subtracting it when the price closes lower. The theory behind OBV is that volume precedes price—rising OBV during a flat or declining price phase suggests that smart money is accumulating the stock, potentially foreshadowing an upward move. Conversely, falling OBV while prices remain high can indicate distribution. Traders use OBV divergences from price as early warning signals of trend reversals and to confirm the conviction behind breakouts in Indian equity markets.