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On the typical price chart, I want to overlay two (2) indicators and make a
visual comparison of the respective trends in these two indicators. My
concern is that when I overlay each indicator without scale, the slopes of
the lines shown on the chart may be distorted because their respective
absolute values are orders of magnitude different.
Specifically, I wish to plot the Linear Regression Slope of the On Balance
Volume for the last 25 days and visually compare this to the Linear
regression Slope of the Closing Price for the last 25 days. The intent is to
look for divergences between the change of the OBV and the change in Price.
(ROC comparisons do not work.) Visual comparison of the overlays of the two
suggested indicators show some promise provided the "without scale" technique
does not distort the relative plots.
The MS Manual on page 128 says you can overlay without scale when you want to
compare relative movements between plots. It does not say the comparison
would be valid between two different overlays on the same chart.
Equis, can you help on this one.
Thanks,
Jim Barone
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