On Balance Volume (OBV) – FX Replay

The On Balance Volume (OBV) indicator on FX Replay is designed to help you gauge buying vs. selling pressure by tracking volume flow in relation to price movement. It's useful for confirming trends, spotting potential reversals, and validating breakout strength during backtesting.

How It Works:

• If the price closes higher than the previous day → volume is added to OBV
• If the price closes lower → volume is subtracted from OBV
• If the close is unchanged → OBV stays the same

How to Use OBV in FX Replay:

Confirm Trends:

• Rising OBV with rising price confirms bullish strength
• Falling OBV with falling price confirms bearish momentum

Spot Divergence:

• Price makes higher highs but OBV does not → bearish divergence
• Price makes lower lows but OBV holds steady or rises → bullish divergence

Validate Breakouts:

• OBV climbing sharply alongside a breakout = volume-backed move → greater confidence in entry

Combine with Tools:

• Pair OBV with:
  • Structure tools
  • FVG zones
  • Custom indicators
    …to identify high-confluence trade setups during backtesting.