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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: PaperPerson who wrote (107636)	3/10/2008 2:05:37 AM
From: E. Charters	Respond to of 312322

OBV is pretty simple. It just associates a volume with either a fall or rise in price, making falls negative and rises positive. Accumulation is given by a positive accumulation. Indicating accumulation of the stock presumably as well. WM's best property a while back was one in which Falco, now Xstrata had a major back in. I am not wild about back in's as they represent cheap no risk explo for the major. Ditto in Mattagami, Quebec with Donner. Great property, but deal is watered down by back in.

To: PaperPerson who wrote (107636)	3/10/2008 11:53:02 AM
From: E. Charters	Respond to of 312322

I am not sure if this is the case, but it occurs to me that OBV may miss an instance that is a very good accumulative indicator, and that is moving up slowly on low volume. I am not sure, because obviously you can see slow feed on that one, but in essence good promoters can do this by inducing buying. If it is done right then there are no down moves, so it should trigger on OBV, but the low volume bit won't show obviously. This is because there are not many offers and buyers are blocked. To test this one should run an OBV against the Diamet Minerals move since its discovery back in the 90's and see what it shows. There would have been people dumping as it moved up, as "smart money" tends to trade like that. EC<:-}