In finance, we often use a line graph to track cumulative volume, which represents the total volume of a day's trading. A higher close compared to the previous day is given a positive value, while a lower close is given a negative value. Traders use this On-Balance Volume (OBV) to confirm a trend or to spot a divergence between the market and the OBV, which could signal a potential reversal. This tool is essential in understanding market movements and making informed trading decisions.
