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Tim:
I entered this function as an indicator and compare it with the OBV using 2
different stocks:Silicon Graphics SGI, and Chrysler C.
The shape of the OBTR curve is similar but smoother than the OBV, it
appears to be flatter. The signals on change to an uptrend occured close
together, on change from an up to downtrend the OBTR showed divergencies
towards the end of the uptrend before the OBV.
This is an interesting indicator. It needs a bit of research to understand
its subtlties, if any. Running it on 2 stocks does not show enough about
its power as an indicator. Since the original formulation was created to
deal with spiky futures data, perhaps it can be modified to include the
volume when dealing with stocks; thus creating a new type of on balance
volume indicator
Thanks for posting this formula.
Lionel
-------------
>For those interested in the On Balance True Range (OBTR)
>indicator, here it is as a MetaStock function. I read the article
>by the OBTR's creator, T. Bierovic. If I interpreted the article
>correctly, this should be it. Let me know how it works.
>
>Cum(If(C > Ref(C,-1),1,-1) *
> (If(Ref(C,-1) < L,
> {Then} (H - Ref(C,-1)),
> {Else}
> If(Ref(C,-1) > H,
> {Then} (Ref(C,-1) - L),
> {Else} (H - L)
> ))))
>
>
>Regards, Tim
>
>
>
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