On-Balance Volume (OBV) is used in trading to analyze the relationship between the trading volume and the price movement of an asset. It's commonly used to identify potential trend reversals and confirm the strength of a trend. Here's how you can use OBV for trading:

1. **Trend Confirmation:** When the OBV line is moving in the same direction as the price, it confirms the current trend. If the price is going up, and OBV is also increasing, it suggests a strong bullish trend. Conversely, if the price is going down, and OBV is decreasing, it suggests a strong bearish trend.

2. **Divergence:** Divergence between OBV and price can be a signal. For example, if the price is rising, but OBV is falling, it could indicate weakening buying pressure and a potential trend reversal.

3. **Volume Breakouts:** Look for significant volume spikes on the OBV chart. If OBV is rising sharply with increased volume, it can be a sign of a strong trend. Conversely, decreasing volume with a falling OBV could indicate a weakening trend.

4. **Support and Resistance:** OBV can help identify support and resistance levels. If OBV breaks through a previous high or low, it can signal a significant price movement.

5. **Trade Confirmation:** Some traders use OBV to confirm their trade signals from other technical indicators.

Remember that no single indicator should be used in isolation. It's essential to combine OBV with other technical analysis tools and consider other factors like market news and fundamentals when making trading decisions. Additionally, it's a good practice to backtest your strategy using historical data to see how OBV would have performed in the past.