Joe Granville developed on balance volume in 1963 and introduced it in his book New Key to Stock Market Profits. On balance volume was one of the first indicators to measure the buying and selling pressure of volume.
This indicator is a running total sum of positive and negative volume. If the day closes up, the volume is added to the running total and if that day closes down, the volume is subtracted from the running total. The calculation of this indicator is the general relationship between volume and the change in price.