Volume or On balance Volume (OBV) is the official term used for technical analysis display based on collective total volume. It is calculated on a basic simple format like, Volume on an up day (which means if the closing was higher than the previous day) is added and Volume on a down day is subtracted.
The preliminary point for an OBV total is zero point which is subjective. Only the end result of a resulting indicator is used and not the actual level of the total. This method was developed in the 1940's by Woods and Vignolia and was released as a proper format in 1946. They named it "Cumulative Volume". Joseph Granville made this technique popular by describing it in his book "Granville's New Key to Stock Market Profits" he came up with the name "on balance volume".
The preliminary point for an OBV total is zero point which is subjective. Only the end result of a resulting indicator is used and not the actual level of the total. This method was developed in the 1940's by Woods and Vignolia and was released as a proper format in 1946. They named it "Cumulative Volume". Joseph Granville made this technique popular by describing it in his book "Granville's New Key to Stock Market Profits" he came up with the name "on balance volume".
