OBV is a cumulative indicator that reflects buying and selling pressure by adding volume on positive days and removing it on negative days. OBV was invented by Joe Granville and published in his 1963 book Granville's New Key to Stock Market Profits. It was the first indicator to differentiate between positive and negative volume flow. By observing divergences between the OBV and price, traders can predict future prices and confirm past price trends.

In the world of forex trading, a balance volume indicator is a way to quantify how much volume has been exchanged in a day. In order to calculate the balance volume indicator, you need to divide the total number of contracts traded by today's matched trades. One can see this information on most websites that offer charts for foreign exchange markets.

Balance volume indicator is a charting technique used in technical analysis to draw attention to whether the market is overbought or oversold and whether it may be due for a reversal.