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Norman,
VPT is an indicator that I find
more usefull as a measure of Money Flow.. An indicator That I find
usefull to measure Accumulation / Distribution on a daily basis
is: (Close- Low)-( High- Close) Divided by the Day's Range (High-Low
). The Resulting Percentage is Multiplied by the Volume I use both of
these indicators together to determine the strenght or weakness of a stock. To
avoid the disadvantages that were pointed out regarding OBV on the broad markets
is to keep an advanca/decline line on volume similar to the a/d line of issues
up minus issues down. Obv is often mixed up with other very usefull
techniques of volume anaysis.
Regards
Dom
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A title=nwinski@xxxxxxxxxxxxxxx
href="mailto:nwinski@xxxxxxxxxxxxxxx";>Norman
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Monday, March 05, 2001 3:01
PM
Subject: Re: [RT] Re: Bear Trap
My problem with OBV is that I think it is
flawed because it treats all price movements the same.
Using OBV, a 1,000,000 volume is the same
whether the stock moves .01 or $10. Volume is energy in and price
change is energy out. The two example are widely different. For
this type of analysis, I prefer VPT =
Volume Price Trend = take daily price movement divide by previous day's
close and multiply that percentage movement times that day's volume and plot.
There is a good article on VPT in the 1970
Investor's Intelligence Encycl. of Stock Market Techniques.
Enjoy,
Norman Winsk
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Stan Book
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Monday, March 05, 2001 11:17
AM
Subject: RE: [RT] Re: Bear Trap
<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 unsubscribe from
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