RE: [RT] Re: Bear Trap

["Stan Book" <sbook@xxxxxxxxxxxxx>]

<SPAN 
class=90374615-05032001>GB,
<SPAN 
class=90374615-05032001> 
The 
theory is that volume leads price. your chart suggests lower prices ahead, but 
does not negate an intervening rally.
<SPAN 
class=90374615-05032001> 
I have 
a few problems with OBV. First, it seems to me that OBV works better for 
individual issues than for indexes. Second, OBV may not be the best measure of 
accumulation / distribution. Third, One never knows if a divergence is just an 
aberration this time or, if valid, how long it will take prices to to be pulled 
in the direction of volume.
<SPAN 
class=90374615-05032001> 
<SPAN 
class=90374615-05032001>Attached is a proprietary volume based oscillator that 
does a fair job of anticipating (or confirming) Dow turns. Even so, an 
oscillator extreme can anticipate a significant price extreme by 2 to 5 
weeks.
<SPAN 
class=90374615-05032001> 
<SPAN 
class=90374615-05032001> 

  <FONT face="Times New Roman" 
  size=2>-----Original Message-----From: Gitanshu Buch 
  [mailto:onwingsofeagles@xxxxxxxxxxxxx]Sent: Monday, March 05, 2001 
  7:23 AMTo: realtraders@xxxxxxxxxxxxxxxSubject: [RT] Re: 
  Bear Trap
  Just started catching up on recent posts... 
   
  So I suppose this divergence in OBV v/s Price favors 
  Price?
  Thanks.
  GitanshuTo 
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