> For the complete documentation index, see [llms.txt](https://rainbow-trends.gitbook.io/rainbow-trends/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://rainbow-trends.gitbook.io/rainbow-trends/individual-tool-tutorials/obv.md).

# Anchored OBV

For those who prefer video tutorials, this breaks down every single aspect of the RT-Anchored OBV Indicator:

{% embed url="<https://www.youtube.com/watch?v=c8G29q6AJuI>" %}

OBV or On Balance Volume is a very useful tool/indicator for more advanced traders who can pick up on the subtle signals that OBV can clue in. For a write up on traditional OBV, Fidelity has a great write up here: &#x20;

{% embed url="<https://www.investopedia.com/terms/o/onbalancevolume.asp>" %}

Rainbow Trends takes this base OBV and pushes it a step further by Anchoring the time frame of the OBV and making it sensitive to a specific window of time. We also added color coding to this tool as well as a Bull/Bear mid point where the trend can be identified as flipping Bullish or Bearish.&#x20;

<figure><img src="https://1850212810-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FyK1OhO0YjcJhgk7zsPjZ%2Fuploads%2FwJMtz92v5NtyGBmugaSV%2Fimage.png?alt=media&amp;token=37ffd639-578b-47e2-a454-5b65bac6cfe2" alt=""><figcaption></figcaption></figure>

Anchored OBV can be adjusted as well. Default settings have this tool being used over a "sliding" anchor that moves over time. This default window of the anchor is 250 candles. Other Anchored OBVs anchor to specific points in time, but we found better results by checking over a moving trend range.&#x20;

<figure><img src="https://1850212810-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FyK1OhO0YjcJhgk7zsPjZ%2Fuploads%2FehuzAbbH0WFkP5p6oQ23%2Fimage.png?alt=media&amp;token=3182ea95-4ba1-4167-864e-f7fd1db8f8d3" alt=""><figcaption></figcaption></figure>

Rainbow Theory traders often use this tool to detect a BART setup as the price will begin to go sideways, but Anchored OBV will start bleeding off:&#x20;

<figure><img src="https://1850212810-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FyK1OhO0YjcJhgk7zsPjZ%2Fuploads%2FlP2kP1TtglcOuKNLgQor%2Fimage.png?alt=media&amp;token=d9ec45aa-cf1f-44df-bae3-c5d0f45db828" alt=""><figcaption></figcaption></figure>

Three settings can be adjusted by the trader:

* Rainbow Color Threshold - Adjusts the threshold of the colors on the OBV line.&#x20;
* Rainbow Color Sensitivity - Adjusts the sensitivity of how easy the colors change on the OBV line.&#x20;
* Anchor Historical Length - Adjusts how far back the "anchor" of the OBV goes back in time.&#x20;

<figure><img src="https://1850212810-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FyK1OhO0YjcJhgk7zsPjZ%2Fuploads%2FazngWuB8Azj3SwkNSPll%2Fimage.png?alt=media&amp;token=09fd7941-3410-4cf3-b17b-81e8f299b853" alt=""><figcaption></figcaption></figure>

{% hint style="danger" %}
If you are still having issues or have questions, please feel free to reach out to us at <admin@rainbow-trends.com> or message us in the Rainbow Trends Discord.
{% endhint %}

<figure><img src="https://1850212810-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FyK1OhO0YjcJhgk7zsPjZ%2Fuploads%2FHhfsu6e27GW487V00acu%2Fimage.png?alt=media&amp;token=2b798bd7-9e4a-4f13-9954-4b979183b337" alt=""><figcaption></figcaption></figure>