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Non-Tech : MB TRADING -- Ignore unavailable to you. Want to Upgrade?

To: kaz who wrote (3557)	1/30/1999 2:18:00 AM
From: Sir Francis Drake	Read Replies (1) \| Respond to of 7382

Thanks, Paul. I'm aware of the "on balance" function, but there are two issues here. One is pure madness on my part (or a personality quirk) - I like to do my own calculations, and I don't trust the accuracy of some of these published numbers (I'm not into conspiracy here, simply many times I found mistakes). Second, the correlation with the LII I think MIGHT show me a pattern - for example, whenever GSCO appears to be accumulating shares based on the LII activity, there is wild selling through INCA that shows up on T&S etc. for a particular stock (I'm just using GSCO as an example). Interesting little things that might give me an insight into some of the kinds of goings on that may be predictive of future price action. Then again, this may be all a wild goose chase, and shadowboxing, and is all nonsense. But you never know until you try. I'll be happy to share my results, such as they may be, though it might take some time. Also, note that it's probably individual to a particular stock, and may not apply to a different stock. My reasoning is simple: I select a handful of stocks that I study the hell out of. I figure that the better I know them, the higher will be the % of successful trades. Perhaps just jumping on whatever is hot at the moment is a better idea, but I like the feeling of control I get from knowing a stock inside out (which is not to say that any stock remains static in it's character; there is always change, and patterns change, and you have to constantly stay flexible, and be willing to quickly adjust). So, I pick 6 stocks to study, and then I trade whatever is best that day. Concentrate, don't get distracted by the fact that YHOO went up by 50%, and regret that I'm not there. I tried that. It didn't work for me. Now, I don't care that you can make 100% in one day on some issue. I care about consistent 5% daily, reliably, like clockwork. Then again, perhaps I'm just slow. Morgan

To: kaz who wrote (3557)	1/30/1999 10:37:00 AM
From: TraderAlan	Respond to of 7382

Paul, Generally agree with you on MACD. But when price leads OBV, the more common outcome is for price to pause into a congestion area rather than fall, while accumulation continues to build and the divergence dissipates. OBV can't be used on intraday charts at all. The distortion created by first and last hour volume peaks screws up everything in-between. Also on thinner stocks, single blocks will destroy meaningful plots. Finally since NASDAQ double counts transactions, there are purists who won't touch OBV on this market in any case. Personally I think it has value on NASDAQ (in longer time frames) but don't trust breakout or breakdown patterns I see on the indicator nearly as much as NYSE. Alan