✓ Mathematical
◆ The PatternIf close > prior close, OBV += volume.
On-Balance Volume — Joe Granville's cumulative volume indicator (1963).
If Close > Prior Close → OBV += Volume
If Close < Prior Close → OBV -= Volume
If Close = Prior Close → OBV unchanged
If Close < Prior Close → OBV -= Volume
If Close = Prior Close → OBV unchanged
The absolute value doesn't matter — the slope reveals accumulation or distribution.
"Volume precedes price":
• OBV rising + price flat → accumulation → expect breakout UP
• OBV falling + price flat → distribution → expect breakdown DOWN
• Divergence between OBV and price = powerful signal
• OBV rising + price flat → accumulation → expect breakout UP
• OBV falling + price flat → distribution → expect breakdown DOWN
• Divergence between OBV and price = powerful signal
Pattern bridge: Cumulative volume adds up conviction — a cumulative sum (CDF-like) of directional volume. In ML, backpropagation accumulates gradients through the graph.