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Strategies & Market Trends : Joe Stocks Trader Talk -- Ignore unavailable to you. Want to Upgrade?

To: Joe Stocks who wrote (34)	2/3/2002 6:38:59 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 787

Joe, I can see one possible way to come up with the 7x factor. If the week in question was the week of Jan7-11, then on a daily chart it appears that most of the time during that week the price was below the close of the prior week, with only a couple of excursions above that prior week close. If that is where it came from, I would not attach much significance to the ratio. I cannot see anything intraday to suggest that sellers had a strong upper hand. The trend was generally down for that week, but the close was well above the low of the prior week that was a good up week. Assuming that the comparison to the end of the prior week was the method used, the following week, Jan14-18 would have been 100% down, since the high of that week was below the prior week close. But even that week did not show a strong selling dominance intraday. The week had two substantial down gaps that really pushed the price lower, but intraday there were plenty of buyers. I don't really know what to make of this. An OBV calculation perhaps suffers from the fact that no matter what intraday time frame you use, the effect of gaps is confined to the open bar volume, and so has no more weight than a modest up or down bar. As weak as Jan14-18 was, in several time frames OBV actually was up for the week. Comparing the volumes of all the trades of one week above and below the close of the prior week does not seem nearly as important to me as the net price change and general trend during that week. Jan14-18 would still have looked bad, and perhaps worse if it had gapped up and spent half the week above the close of the prior week before closing where it did. Just my thots.. not particularly profound. Dan