OBV used to be used in different ways. Granville had one use for it and Larry Williams (I think it was him) used a different formula to obtain what he called OBV. I don't remember the formula any more as I haven't played with it in years. I do remember that it gave better results than Granville's straight OBV,
There was a theory in the late 60s and early 70s that you could judge how much volume it would take to move a stock an 1/8, 1/2 or point. On balance volume fell out of favor for a while after Granville predicted a massive bear market. The next morning the market dropped substantially and then it rallied and just didn't stop. After that Granville lost his ability to move markets or peoples opinion.
That is as I remember it.
----- Original Message -----
Sent: Friday, March 23, 2007 7:05 AM
Subject: Re: [RT] Thursday (3/22) SP500 Intraday Volume
Hi Pete,
Is the OBV a leading indicator for chg of trnd? or do you just use the absolute value ?
Zait.
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