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I tried that (U-D)/(U+D) once and it just didn't look good on the short term
basis. The feel I got was that comparing this period with a period years
ago and using the normalization made a lot of sense, but it just seemed to
cut the edge off the volume emphasis day to day. In the short run the total
volume and total issues don't change much. In the long run they do.
Mathmatically it makes since to do it as you suggest, but i kind of like to
see it in more absolute terms than relative terms. When I get some time
I'll revisit the idea.
thanks,
bob
----- Original Message -----
From: "Dom Perrino" <domenick@xxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Wednesday, February 28, 2001 7:38 PM
Subject: Re: [RT] MKT - INDU
> Bob,
> As you know I consider volume one of the best indicators .Besides OBV
and
> cumulative volume which I know you use, if you have not tried this one on
> volume try it . It will neutralize the volume for high volume days and low
> volume days so one can compare any day with another.It becomes empirical
> .The simple formula : U-D/U+D= %.. You then have cumulative volume on a %
> basis . A time frame can now be compared with another time frame even
though
> one may have occurred during a slow week and the other during a busy
> period..
> Dom
> ----- Original Message -----
> From: "BobR" <bobrabcd@xxxxxxxxxxxxx>
> To: <realtraders@xxxxxxxxxxxxxxx>
> Sent: Wednesday, February 28, 2001 6:04 PM
> Subject: [RT] MKT - INDU
>
>
> > Was updating the charts after the close today and this one stuck out as
> > something potentially significant. Its a take off on how AIQ combined
NYA
> > volume with the DJIA to create the On Balance Volume indicator. Note
what
> > the OBV is doing, i.e. trending below the lower Bollenger Band. Also
note
> > its level compared to last summer's high and note how it is below last
> > October's low. And note that the DJIA failed at the 200 day MA today.
> > Another thing, if you go back in history, the major drops were preceded
by
> > an erosion in breadth and did not suddenly happen unnoticed by a few.
The
> > majority were in the buy and hold, can't go much lower mentality which
> turns
> > to disbelief in a climatic selloff. This situation sort of has that
feel.
> > In short, that OBV just looks downright ugly.
> >
> > bobr
> >
> > To unsubscribe from this group, send an email to:
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> >
> >
> >
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> >
> >
>
>
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