MarketXLS

On Balance Volume (OBV)

Calculates the On Balance Volume, a cumulative volume-based indicator that relates volume to price change. OBV is used to confirm price trends and identify potential reversals.

Formula

  • If today's close > yesterday's close: OBV = Previous OBV + Today's Volume
  • If today's close < yesterday's close: OBV = Previous OBV - Today's Volume
  • If today's close = yesterday's close: OBV = Previous OBV

Parameters

Parameter Type Default Description
Symbol String Required Stock ticker symbol
Days String "14" Number of days for calculation
StartDate Date None Optional start date for historical data
Series String "False" Whether to return series data

Interpretation

OBV Signal Meaning
Rising OBV Buying pressure, volume flowing into the stock
Falling OBV Selling pressure, volume flowing out of the stock
OBV divergence from price Potential trend reversal
OBV breakout Confirmation of price breakout

Notes

  • OBV is a running total, so absolute values are less important than trends
  • Use OBV divergence with price for reversal signals
  • Works best with stocks that have significant volume

Syntax

=OnBalanceVolume(Symbol, [Days], [StartDate], [Series])
Excel Desktop (Windows)

Parameters

symbolstringRequired

Stock ticker symbol

daysstring

Number of days for calculation

startDatedate

Start date for historical calculation

seriesstring

Whether to return series data

Returns

number

On Balance Volume value

Examples

=OnBalanceVolume("AAPL")
OBV with default 14 days
=OnBalanceVolume("AAPL", "20")
OBV with 20 days
=OnBalanceVolume("AAPL", "14", DATE(2024,1,1))
OBV from specific date
=OnBalanceVolume(A1, "14")
Symbol from cell reference

When to Use

  • Confirming price trends with volume
  • Identifying volume divergences
  • Spotting accumulation/distribution
  • Volume-based momentum analysis

When NOT to Use

Scenario Use Instead
Simple daily volume Volume()
Average volume AverageDailyVolume()
Price-based momentum RelativeStrengthIndex()
Trend direction SMA(), EMA()

Common Issues & FAQ

Why is OBV so large?

OBV is a cumulative indicator that sums volume over time. The absolute value matters less than the trend.

How do I interpret OBV divergence?

If price makes a new high but OBV doesn't, it may signal weakness. If price makes a new low but OBV doesn't, it may signal strength.

What period should I use?

The default 14 days is standard. Longer periods show longer-term trends, shorter periods are more sensitive.

Can OBV be negative?

Yes, OBV can be negative if there's more selling pressure (down days) than buying pressure (up days) over the period.

Related Formulas

More MarketXLS Technical Indicators formulas you can use in the same worksheet:

See OnBalanceVolume used in a complete workbook: Bloomberg Alternative: The Best Excel-Native Financial Data Platform in 2026

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