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yorker@xxxxxxx wrote:
>
> Don,
>
> I have several questions:
>
> l. I don't know what you mean by cumulative volume in relation to the
> chart in your gif file. Is the volumme line an on balance line, otherwise
> cumulative would just keep going in one direction, it seams to me.
This thing I am calling cumulative volume is intraday advancing volumue
minus declining volume. Call this X. X is calculated for every bar on a
two minute basis for the entire day. At the end of the first day of
calculating X, lets assume I get a value of 500. Or at the end of the
day 500 more shares of advancing volume was registered than declinging
volume...
At 9:32 the next day, I get a new X lets say that that value is -45
since there was more declining volume than advancing volume. The value
of x = -45 is added to the previous day's closing value of 500 to get a
value of 455 then it proceeds just like the previous day.
What I want to observe when I designed it on an intraday basis was to
find if there is long term support and resistance lines if volume is
looked at in this manner. It appears promising.. I really don't have
enuf data but it appears that a run of selling in terms of volume is
"kinda" comparible to another of similar price and fear strength.
> 2. You said after a definitive spike low volume improves. Do you mean
> that after the low between 12 - 15 that the volume line went up and on the
> 22nd it did not?
See the attached gif. I made an explicit comprison between price
behaviour and volume behavior for 10/28 and Nov 13..
>
> 3. I don't know what you mean that selling reaches a climax even though
> price didn't.
I felt that the low made earlier on 12/19 smelled like a climatic low in
price.
But NOT with volume.. Note that volume made a lower low. Price
hasn't... I was worry worting over this anomoly in behavior that I have
observed in the past.. This is the first time I have observed price drop
significantly lower than price..
>
> Anyway, if the line is an OBV line - to me this is a strong case of
> divergence between volume and price. A very interesting chart indeed.
This isn't an obv. Since OBV has to have price to figure whether to add
or subtract volume..
> I really can't comment on "spike low volume" because I don't know what you
> mean. I also wonder about the moving average line, if that is what I am
> looking at, means. It may prove to be a useful tool.
>
Kind regards,
> Yorker
I hope the more extended history is more clear. It is on a half hour
basis. and the program has a bug for the first hour.. so it isn't
exact..
A Happy and Prosperous New Year to you
Don
Attachment Converted: "c:\eudora\attach\CumulVol1.gif"
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