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]
