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Those are all good points for VPT and volume
accumulation/distribution, and I won't try to defend OBV except to say that that
it seems to have worked quite nicely when using NYA volume with the INDU
price. It gives double tops, multiple tops that diverge with price and
agrees to be measured with BBands in a useful way for buys and sells.
Monday saw a move back inside the lower band, hint, hint.
bobr
<BLOCKQUOTE
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:
<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 9:00
PM
Subject: Re: [RT] Re: Bear Trap
<BLOCKQUOTE
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
<BLOCKQUOTE
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:
<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
<BLOCKQUOTE
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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>
<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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