The problem
On-balance volume is one of the oldest ideas in technical analysis and one of the least used well. The raw line is noisy, a single outlier bar can distort it for weeks, and spotting divergence by eye means staring at two charts and hoping.
Which is why most traders glance at OBV, see a squiggle, and go back to price.
What it shows
Plutus Flow puts four layers over on-balance volume so the disagreement between price and volume becomes visible rather than inferred.
| Divergence | Pattern | Reading |
|---|---|---|
| Bullish | Price lower low, OBV higher low | Selling pressure fading beneath a falling price |
| Bearish | Price higher high, OBV lower high | Buying pressure fading beneath a rising price |
| Hidden bullish | Price higher low, OBV lower low | Continuation within an uptrend |
| Hidden bearish | Price lower high, OBV higher high | Continuation within a downtrend |
Four layers over the raw line
Extreme zone entries and exits are marked with dots, which makes the reversion visible without watching the panel continuously.
Non-repainting, and what that means here
Every marker is confirmed at bar close and stays where it printed. What you see in history is exactly what you would have seen live — which is the only way a backtest of your own eyes means anything.
What it isn’t
Divergence is not a timing tool and Plutus Flow does not treat it as one. Price and volume can disagree for a long time before anything happens, and sometimes nothing does.
Who it’s for
Traders who want volume analysis with a defined statistical basis rather than a line they eyeball and interpret generously.
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Part of The Elite Seven. More on cycle structure in Insights and the Chronicle.