Hi
The slope of the OBV will be identical, it doesn't matter if you start 20, 60 or 1,000 days ago, since it's always a running summation of the volume. The actual numbers will be different, but the shape is the same. example: starting volume 0: + 100 = 100 - 200 = -100 +500 = 400 Starting volume 1000: + 100 = 1100 - 200 = 900 +500 = 1400 Both result in the same difference of +300 shares from the starting point. Best regards, Gary ----- Original Message ----- From: shak458956 To: [email protected] Sent: Monday, November 27, 2006 3:29 PM Subject: [quotes-plus] Re: On The Balance Volume You see, if we are looking at one stock at a time than OBV summation since the beginning of time is fine. But, if we are comparing two different instruments where the first instrument started trading in 1999 and the other in 2003 then we will have to compare the slopes of OBVs which are calculated over same time periods (past 14 days, 30 days, 200 days, etc) I am using QP data for OBV calculation. Just wondering if 14 days are long enough to capture the essence of the metric or should I go for 20 or more? Shak --- In [email protected], "EAdamy" <[EMAIL PROTECTED]> wrote: > > Assuming that price data and volume data is identical between two different > sources (a stretch, I know), the net differential in OBV between any two > dates should be identical. > > Earl > > -----Original Message----- > From: [email protected] [mailto:quotes- [EMAIL PROTECTED] > Behalf Of gary > Sent: Monday, November 27, 2006 6:25 AM > To: [email protected] > Subject: Re: [quotes-plus] On The Balance Volume > > > Hi > > The OBV is a sum of the positive volume - negative volume from the > beginning of our history. The actual numbers will almost never match anyone > else's numbers, as they depend on having the same number of days for the > data, and the volume on each day must be identical. > > From decision point: > > OBV was invented by Joe Granville. OBV is calculated by adding the daily > volume to the cumulative total of volume if the stock closes higher than the > previous day, or subtracting it if the stock closes lower. (No change days > are ignored.) Absolute values in OBV are meaningless, and there is no scale > on an OBV chart; however, a graph of OBV movement is very useful in spotting > divergences in OBV and price. > > The OBV graph and price index should be similar in shape, and they usually > are. Divergences in price and OBV (also called non-confirmations) are > important events which warn that a change of price trend is likely. An > example of a negative divergence (which predicts lower prices to come) would > be for the stock to hit a higher price high that is not confirmed by > corresponding new high in OBV. > > Best regards, > > Gary > > ----- Original Message ----- > From: shak458956 > To: [email protected] > Sent: Sunday, November 26, 2006 7:16 PM > Subject: [quotes-plus] On The Balance Volume > > Dose anyone know what time period is used for building On The Balance > Volume in QP Charts? I calculated the metric from raw data using 20 > days as well as 14 days, but my numbers do not match QP Charts. > > What is the appropriate (industry standard) period for this metric. > > Thanks, > > Shak > > [Non-text portions of this message have been removed] > > > > > > > [Non-text portions of this message have been removed] > [Non-text portions of this message have been removed]
