|
PureBytes Links
Trading Reference Links
|
>The intent is to look for divergences between the change
> of the OBV and the change in Price.
Use the RS - Relative Stength (Comparitive)
(formula: Indicator/Indicator)
for example: in your situation divide Price/LinRegSlope(OBV)
or extend capacities dividing the above outcome with
a SMA(Price/LinRegSlope(OBV)), eg
(Price/LinRegSlope(OBV))/Mov(Price/LinRegSlope(OBV)),14,S)
Currently the Euroland index (EuroStoxx50) is outperforming the US index(DowIndu),
meaning money is flowing into Europe's Large Caps > into the US's LC's.
As such the US, on daily data, is (slightly) negatively diverging (vs Europe) .
On weekly data, tho, they are both firmly heading down (both indexes move sideways,
and not one is realy truely outperforming the other one) slowly in a Descending triangle
pattern (since Jul98), eg both are "powerless" (waiting for the executioner ?).
Regards,
Ton Maas
ms-irb@xxxxxxxxxxxxxxxx
Dismiss the ".nospam" bit (including the dot) when replying and
note the new address change. Also for my Homepage
http://home.planet.nl/~anthmaas
----- Original Message -----
From: <Wooglinx@xxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: maandag 13 september 1999 19:36
Subject: Overlay Without Scale
> 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
>
|