I can't believe I wasted a week on this. But, I think now I figured it out. Here it is for anyone who is interested.
I just can not calculate OBV as follows GOOG 05/01/06 OBV(30) GOOG 05/02/06 OBV(30) GOOG 05/03/06 OBV(30) GOOG 05/04/06 OBV(30) GOOG 05/05/06 OBV(30) I need to do following if I want to capture the value of OBV GOOG 05/01/06 OBV(26) GOOG 05/02/06 OBV(27) GOOG 05/03/06 OBV(28) GOOG 05/04/06 OBV(29) GOOG 05/05/06 OBV(30) Fun. Fun. Fun. I think I have crossed the boundary and become a nerd :) --- In [email protected], "gary" <[EMAIL PROTECTED]> wrote: > > 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" <eadamy@> 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] >
