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Attached is a chart example of CV peaks
in relation to price. The theory as Ben describes it is price and CV
should move in unison. In the real world sometimes CV and price peak at
the same time and sometimes CV peaks one day ahead of price. That's the
olde divergence. If you assume a one to one correspondence then Ben's
description below says CVnow/CVlow = price
theoretical/price low or CVnow/CVhigh = price theoretical/ price high. He
used the more recent of CV high or CVlow as the reference point for comparison
to today's data. Rearranging the math gives Price theoretical =
PriceLow *(CVnow/CVlow) and
Price theoretical = PriceHigh*(CVnow/CVhigh).
Apparantly a key is to use the highest and lowest CV in the last 34 days.
According to the below description the price ratio is greater than the CV ratio,
therefore Price is ahead of CV and should pullback. That is the theory,
and appears to happen much of the time, but suppose the rising price sucks in
additional volume, then the price and CV will close the gap in the ratios
eventually at or just prior to a price trend change.
bobr
<A
href="http://www.oextrader.com/sigma_trader";>http://www.oextrader.com/sigma_trader
<A
href="http://www.zubee.com";>http://www.zubee.com
<BLOCKQUOTE
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A title=profitok@xxxxxxxxxxxxx
href="mailto:profitok@xxxxxxxxxxxxx";>profitok
To: <A title=gannsghost@xxxxxxxxxxxxxxx
href="mailto:gannsghost@xxxxxxxxxxxxxxx";>gannsghost@xxxxxxxxxxxxxxx
Cc: <A title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx ; <A
title=vdonovan@xxxxxxxxxxxxx href="mailto:vdonovan@xxxxxxxxxxxxx";>Vincent
DONOVAN
Sent: Thursday, January 31, 2002 6:01
PM
Subject: [RT] Re: nasdaq 100 /sell
Hello
According to my spread sheet here is the stats
the highest close in 34 days is in
volume net 464.46 billion price 2059.38 Jan 8
2002
lowest close in 34 days in vol
net
417.94 billion price 1882.55 Jan 22 2002
current net
vol
425.13 billion price 1933.94 Jan 31 2002
current proposed close
is calculated the following
425.13/417.94=1.0172034 times
1882.55=1914.93
we close with a BEARISH divergence on
volume
I expect a sideways to up until
Tuesday and then down
we must close at 1853.11 or under before a substantial
up move comes
417.94/464.46=.8998406
this times 2059.38 gives a close of
1853.11
(we already even got there intra day)
the same math applies to the nya
(both should make a higher hi and a higher low
tomorrow)
<BLOCKQUOTE
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A title=bobrabcd@xxxxxxxxxxxxx
href="mailto:bobrabcd@xxxxxxxxxxxxx";>BobR
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Cc: <A title=gannsghost@xxxxxxxxxxxxxxx
href="mailto:gannsghost@xxxxxxxxxxxxxxx";>gannsghost@xxxxxxxxxxxxxxx ; <A
title=vdonovan@xxxxxxxxxxxxx href="mailto:vdonovan@xxxxxxxxxxxxx";>Vincent
DONOVAN ; <A title=panda22@xxxxxxxxx
href="mailto:panda22@xxxxxxxxx";>Victor Wadel
Sent: Thursday, January 31, 2002 8:05
PM
Subject: [gannsghost] Re: [RT] nasdaq
100 /sell
Ben, the CV is back to where it was on the
close of 1/28 and open of 1/29 yet the ND is below its level of the same
days. The yellow Andrews Pitchfork is pointing at 1610. What is
your interpretation of the divergence between the CV and the ND as of
today's close? What would the CV have to do on Friday to convince you
the ND is going higher? How do you calculate the ND move in points
with respect to the CV move? The uvol/dvol ratio is getting rarified
at 2.77 as is the upissues/dwnissues at almost 2.0 These both seem to
be saying there is underlying strength in the Nasdaq. What I would
expect in the next few days is for the ND to work higher and the latter two
ratios to diverge downward from the ND. A very similar CV and breadth
ratio situation exists with the SP and the NYA data.
bobr
<BLOCKQUOTE
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A title=profitok@xxxxxxxxxxxxx
href="mailto:profitok@xxxxxxxxxxxxx";>profitok
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Cc: <A
title=gannsghost@xxxxxxxxxxxxxxx
href="mailto:gannsghost@xxxxxxxxxxxxxxx";>gannsghost@xxxxxxxxxxxxxxx ;
<A title=vdonovan@xxxxxxxxxxxxx
href="mailto:vdonovan@xxxxxxxxxxxxx";>Vincent DONOVAN ; <A
title=panda22@xxxxxxxxx href="mailto:panda22@xxxxxxxxx";>Victor Wadel
Sent: Thursday, January 31, 2002 4:33
PM
Subject: [RT] nasdaq 100 /sell
Unless we can close tomorrow above 1572.93 cash we
are still in a down trendTo unsubscribe from this
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Attachment:
Description: "CVnaznya.gif"
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