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Strategies & Market Trends : The 56 Point TA; Charts With an Attitude -- Ignore unavailable to you. Want to Upgrade?

To: Ocote who wrote (10014)	1/4/1998 7:35:00 PM
From: Doug R	Read Replies (1) \| Respond to of 79179

Ocote, Put up the default PVI and add the NVI to the screen. The point at which the PVI crosses above the NVI is almost always where a price turnaround begins. I also use accumulation/distribution and MoneyFlow, both of which are volume sensitive. Doug R

To: Ocote who wrote (10014)	1/5/1998 8:40:00 PM
From: Ocote	Read Replies (2) \| Respond to of 79179

Re: Volume indicators >>I would like to know more about indicators that you have found useful in evaluating volume.<< Well, it's all there in the help section of Parity Volume moving averages: It's possible using Parity to construct such a thing, but it doesn't distinguish between up and down volume--very important difference. Enter--Chaiken who developed the Volume accoumulator(an improvement on OnBalance Volume, which gives all the volume to buyers or sellers--too crude). "Instead of assigning all the volume to either the buyers or the sellers, the Volume Accumulator uses a proportional amount of volume corresponding to the relationship of the closing price to the intraday mean price. If prices close at the high or low of the day all volume is given to the buyers or sellers as in the OBV calculation." (Kaufman, p. 178). The assumption is that the closer the closing price is to the high the more accumulation is occurring, while a close near the low indicates distribution. Weighting the volume by this percentage indicates the importance of the accumulation or distribution which is occurring. The Accumulation/Distribution function can also take the form, AD(p), where p is an optional parameter which changes the function from the running total to a p period moving total... Now, how about that MACD idea, comparing two moving averages....it's called the Chaiken oscillator: The Chaikin Oscillator subtracts a 10 day moving average of the Accumulation/Distribution Line from a 3 day moving average of the Accumulation/Distribution * Now that I've answered my own question. I hope the explanation was useful for someone else not versed in these indicators. Ocote *Parity Plus, Copyright Paul Rickert, All Rights Reserved