On the whole Volume is a volume indicator that forecasts price changes based on trading volume. Joseph Granville was the first to do so in 1963 when he published a book on stock market trading.
The concept behind OBV is that trading volume has an impact on price and can be a useful tool in determining whether a trend will continue or not. Additionally, OBV provides hints about the kinds of market participants who are trading. For instance, if volume rises while the price holds steady, it may indicate that institutions or other more experienced players are purchasing assets from retail traders only to resell them once the price increases.
Because the OBV is a momentum indicator as opposed to the RSI, numerical values are not crucial to generating signals with the OBV. More information is revealed by the slope and its angle than by its absolute value. Generally speaking, we can anticipate an asset to eventually follow the move up when the volume on up days outpaces the volume on down days. The trend is stronger the steeper the slope.
However, traders should exercise caution when using the OBV because it can easily be distorted by whales or market makers who generate large volumes without affecting the price. The OBV is best viewed as a signal to be used in conjunction with moving averages and the aforementioned indicators, just like other indicators.