chetron
2,817 posts
msg #66387
- Ignore chetron |
8/19/2008 12:23:04 PM
THIS MORNING, 8/19/08, I WAS TRADING AMR. FOR MY 1ST TIME, WHILE USING OBV ON MY CHART, I NOTICED THAT THE PRICE WAS GETTING MORE POSITIVE, WHILE THE OBV WAS GETTING MORE NEGATIVE. I AM USE TO THEM ALWAYS BEING IN SYNC. ANYONE HAVE A RATIONALE FOR THIS.
TIA CHETRON
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johnpaulca
12,036 posts
msg #66392
- Ignore johnpaulca |
8/19/2008 1:34:06 PM
Chet;
if prices are moving higher while the volume line is dropping, a negative divergence is present. This divergence suggests that the uptrend is not healthy and should be taken as a warning signal that the trend will not persist.
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WALLSTREETGENIUS
983 posts
msg #66394
- Ignore WALLSTREETGENIUS
modified |
8/19/2008 1:35:46 PM
TIA -
OBV bottomed at exactly 12:00 noon EST. It wasn't until then, that price (AMR)started to climb from $10.02 to $10.50 at the present (1:25). So I have no Idea what you are seeing in OBV. The very second OBV & price touched the bottom LRC(60), it began its ascension. Think you better recheck your work Tia. I obviously checked, and everything is doing what I said It was. Tia, what charting software to you use?...
RIGGS
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chetron
2,817 posts
msg #66395
- Ignore chetron |
8/19/2008 1:37:11 PM
thanx J.P. good thing i didn't listen to PRICE ACTION. the OBV INDICTOR saved the day. i knew price action was full of it. lol. ; )
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chetron
2,817 posts
msg #66396
- Ignore chetron |
8/19/2008 1:39:48 PM
genius,
i was shorting AMR between 11:40 to 11:58 this morning.
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WALLSTREETGENIUS
983 posts
msg #66397
- Ignore WALLSTREETGENIUS |
8/19/2008 1:54:38 PM
Tia -
Were you using anything less than a 30 min. chart?...that might be the problem. Do you see where OBV bottomed? Look at PO(14) rising at the same time. Also, look at FOSC(5,3) at 12:00. Do you see that? There's your covered short. 10:30 AM should have been your short entry if you were solely using OBV.
RIGGS
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chetron
2,817 posts
msg #66398
- Ignore chetron |
8/19/2008 1:57:56 PM
GENIUS,
I USE 5 MIN CHARTS.
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WALLSTREETGENIUS
983 posts
msg #66399
- Ignore WALLSTREETGENIUS
modified |
8/19/2008 2:12:36 PM
The best thing to do is on-plot OBV onto an oscillator like Billy(2). If your charting software allows you to do this, you can see the linear progression of OBV much more clearly. That's what I do, and I use the intraday bounces for entries and exits all day long using a 30 min. chart. I wrote about this in TRO's 'FADING THE GAP" thread on page 18 I believe.
Food-4-thought...
RIGGS
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chetron
2,817 posts
msg #66400
- Ignore chetron
modified |
8/19/2008 2:15:12 PM
I USE TDAMERITRADE COMMAND CENTER 2.0.
THANX, GENIUS.
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chetron
2,817 posts
msg #66423
- Ignore chetron |
8/20/2008 9:38:01 AM
i guess what i didn't realize before, was that even though price is a factor of the OBV, there can be divergence.
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