Better yet I think the sentence "The OBV is displayed with a 90-period. simple moving average of the OBV"." in the Quotes Plus Help File.is an error. I come to this conclusion after doing a search with Google on the phrase "On Balance Volume" 1. None of the definitions of "On Balance Volume" that came up said anything about moving averages. 2. The absolute value of the "On Balance Volume" is meaningless. Users of the "On Balance Volume" indicator are only interested in the slope of the "On Balance Value" line. 3. Calculation of the "On Balance Volume" line is similar to the calculation of the "Advanced Declined" line. 4. Because an "On Balance Volume" indicator is supposed to be a leading indicator calculating a moving average of the "On Balance Volume" is counter productive. A moving average turns an indicator into a lagging indicator.
Howard shak458956 wrote: > > Howard, I think that "90 days" is for the moving average on OBV not > for the OBV it self. > > Shak > > --- In [email protected] > <mailto:quotes-plus%40yahoogroups.com>, "Howard R. Hansen" <[EMAIL PROTECTED]> > wrote: > > > > The Quotes Plus Help File says "The OBV is displayed with a 90- > period > > simple moving average of the OBV". > > > > Howard > > > > shak458956 wrote: > > > > > > 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 > > > > > > > > > >
