What is On-Balance Volume?
OBV is a running total of volume — add the day's volume when price goes up, subtract it when price goes down. Over time, OBV builds up a picture of whether big money is flowing into or out of an asset. When OBV rises alongside price, the trend is healthy and well-supported. When price rises but OBV doesn't follow, that's a warning sign — the move may not have real conviction behind it. Joseph Granville developed OBV in the 1960s with a simple but powerful idea: volume precedes price.
How Does It Work?
The bot tracks OBV and smooths it with an EMA. When OBV is above its smoothed average and trending up, money is flowing in — the bot signals Buy. When OBV falls below its average and trends down, money is flowing out — the bot signals Sell. Uses price and volume data.
Using It in BitThor
Available in bot config. OBV is ideal as a confirmation indicator — when OBV agrees with your price indicator, you have extra confidence in the trade. When they disagree, treat it as a warning to be cautious.
Tips for Beginners
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OBV divergence is one of the most powerful early warning signs in trading: if price makes a new high but OBV doesn't, the trend may be about to reverse.
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Always pair OBV with a price-based indicator — it's a confirmation tool, not a primary standalone signal.
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OBV can lead price by several bars. When you see OBV turning before price does, pay attention — it often knows first.
Indicator by: Joseph Granville | Learn more
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Risk Disclosure: Cryptocurrency trading involves substantial risk of loss and is not suitable for every user. Review your bot settings carefully before live trading. BitThor provides software tools only and does not provide investment advice. ML-based forecasting and predictive signals are analytical tools only and are not guarantees of future performance or profit.