on balance

The On Balance Volume (OBV) for an n-day period is defined as the sum of all volumes for up days minus all volumes for down days. An up day is one where the price closed higher or the same as the previous day. The On Balance Volume study calculates the n-day OBV for each day and charts it as a line or histogram which can oscillate around the zero line.

The On Balance Open Interest for an n-day period is defined as the sum of all Open Interest for up days minus all Open Interest for down days. An up day is one where the price closed higher or the same as the previous day. The On Balance Open Interest study calculates the n-day Open Interest for each day and charts it as a line which can oscillate around the zero line.