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Good point! I used the MetaStock OBV formula to create the OBTR formula.
If the MetaStock formula is flawed then so is the OBTR formula that
I sent out. If your change correctly reflects the true OBV formula then
that is the way to go. Thanks.
Regards, Tim
JH McLean wrote:
>
> In reference to Saturday 23 August 1997 posting of OBTR formula by Tim Kruzel
>
> The On Balance True Range formula sent in:
>
> 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)
> ))))
>
> To my way of thinking disregards the possibility of consecutive equal closes which does distort the indicator considerably in a flat market.
> This may be done on purpose as I do not know the indicator or its use. (I would appreciate any information on its use - it looks quite interesting.)
>
> To overcome the equal close problem the following modification looks appropriate:
>
> Cum(If(C > Ref(C,-1),1,If(C < Ref(C,-1),-1,0))*
> (If(Ref(C,-1) < L,
> {Then} (H - Ref(C,-1)),
> {Else} If(Ref(C,-1) > H,
> {Then} (Ref(C,-1) - L),
> {Else} (H - L)
> ))))
>
> Also, in my humble opinion, the On Balance Volume formula as shown in the MS help files:
>
> (if(c > ref(c,-1),1,-1) * volume) + PREV
>
> Has the same problem (this formula does not mirror the built in indicator)
>
> If modified as :
>
> (If(C > Ref(C,-1),1,If(C < Ref(C,-1),-1,0)) * VOLUME) + PREV
>
> Does mirror the built in indicator.
>
> Any comments Equis?
>
> Best of luck, James
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