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style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Dom
Perrino
To: <A
href="mailto:realtraders@xxxxxxxxxxxxxxx";
title=realtraders@xxxxxxxxxxxxxxx>realtraders@xxxxxxxxxxxxxxx
Sent: Monday, March 05, 2001 10:33
PM
Subject: Re: [RT] Re: Bear Trap
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,
When you use VPT, do you plot it
with those loopty loop thingies?
Cheers,
Norman
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A href="mailto:nwinski@xxxxxxxxxxxxxxx";
title=nwinski@xxxxxxxxxxxxxxx>Norman
To: <A
href="mailto:realtraders@xxxxxxxxxxxxxxx";
title=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 <FONT
face=Arial size=2>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
href="mailto:realtraders@xxxxxxxxxxxxxxx";
title=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>
<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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