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volume

OBV Flow

Tracks whether volume is flowing with or against price. Buys when On-Balance Volume crosses above its 20-day average and sells when it falls below.

Entry Logic

Buy when OBV crosses above its 20-day moving average — net volume flow turning positive.

Exit Logic

Sell when OBV crosses back below its 20-day average.

How Rules Combine

OBV adds the day's volume on up-days and subtracts it on down-days, accumulating a running total. Averaging the total smooths the flow into a trend signal, just like a moving average on price.

When It Works (Market Edge)

Sustained trends where accumulation keeps pushing OBV higher alongside price.

When It Fails

Low-volume noise and divergence traps: OBV can drift away from price for months, and the average cross fires on volume blips that mean nothing.

Common Myths

Myth: OBV divergence predicts reversals.

Truth: Divergences are common and can persist for months. They hint at weakening participation but do not time the turn.

Myth: OBV shows where smart money is buying.

Truth: OBV is a running tally of up vs down volume. It cannot distinguish institutional accumulation from retail churn.

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5Y Rankings

Performance across major assets, sorted by return.

Period:
AssetTotal ReturnWin RateProfit FactorMax DrawdownAvg DurationTradesAction