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On-Balance Volume (OBV)

Cumulative volume flow indicator that tracks whether volume is flowing into or out of an asset based on price direction

PropertyValue
CategoryValuation Metrics
UnitUSD
Resolution1d
AssetsBTC
TierBasic
API EndpointGET /v1/holder/valuation
Fieldobv

Overview​

On-Balance Volume (OBV) is a cumulative volume-based momentum indicator developed by Joe Granville. It operates on the principle that volume precedes price movement. On days when the price closes higher, the entire day's volume is added to the running total; on days when the price closes lower, the volume is subtracted.

> Volume source: This metric uses spot exchange trading volume in USD (not on-chain transfer volume). This reflects actual market trading activity across centralized exchanges.

Formula​

OBVt={OBVt−1+Volumetif Closet>Closet−1OBVt−1−Volumetif Closet<Closet−1OBVt−1if Closet=Closet−1\text{OBV}_t = \begin{cases} \text{OBV}_{t-1} + \text{Volume}_t & \text{if } \text{Close}_t \gt \text{Close}_{t-1} \\ \text{OBV}_{t-1} - \text{Volume}_t & \text{if } \text{Close}_t \lt \text{Close}_{t-1} \\ \text{OBV}_{t-1} & \text{if } \text{Close}_t = \text{Close}_{t-1} \end{cases}

Interpretation​

  • Rising OBV indicates that volume is heavier on up days, suggesting accumulation and bullish pressure
  • Falling OBV indicates that volume is heavier on down days, suggesting distribution and bearish pressure
  • The absolute value of OBV is less important than its direction and trend
  • Divergence between OBV and price is a key signal — if price makes a new high but OBV does not, the rally may lack conviction

Use Cases​

  • Trend confirmation: Verify that price movements are supported by corresponding volume flows
  • Early reversal signals: OBV divergences often precede price reversals by days or weeks
  • Breakout confirmation: A breakout accompanied by rising OBV is more likely to sustain
  • Accumulation/distribution analysis: Identify periods when smart money may be accumulating or distributing

API Usage​

curl -H "Authorization: Bearer YOUR_API_KEY" \
  "https://api.blocklens.co/v1/holder/valuation?start_date=2024-01-01&end_date=2024-12-31&limit=365"
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  • Accumulation/Distribution Line (ADL) — Cumulative volume indicator weighted by where the close falls within the daily range, revealing accumulation and distribution patterns
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