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Joe:
I have tried several versions of OBV, most of them don't give very different
or better/worse signals than Joe Granville's method. The only one I've seen
that may be better is the Time Segmented Volume used by TC2000.
Lionel Issen
lissen@xxxxxxxxx
----- Original Message -----
From: <Arsk0jn@xxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Cc: <Arsk0jn@xxxxxxx>
Sent: Saturday, August 12, 2000 5:45 PM
Subject: Re: M. Prings discounted MetaStock's CDs.
> Lionel, in addition to the points you make there was a serious flaw in the
> way Granville determined OBV. He applied all of the daily volume either to
> the up-volume or down-volume depending on whether the stock closed up or
down
> for the day. Thus a stock closing up 1/8 point on one million shares would
> have the same increase in OBV as a stock moving up 2 points on one million
> shares. I read an article in the early '70's that calculated the up-volume
> as: ((High - Open) + (Close - Low))/2(High - Low). The reverse for
> down-volume. This gives a much more accurate evaluation of
> accumulation/distribution.
>
> The first edition of Perry's book was published in 1978. Based on its
> success, Perry was asked by Conti Commodity in St. Louis to manage a
> commodity account ($10,000 minimum to join). It did not do well in the
1980
> swing and was closed some time later. Which just goes to show that just
> because you can write a good cookbook doesn't necessarily mean you're a
good
> cook.
>
> Joe Nemecek
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