| JAN 1990
Increasing OBV reliability with stock index futures by Gerald Appel
Increasing OBV reliability with stock index futures by Gerald Appel Traders have used volume pattern recognition techniques in an attempt to forecast price movement probably for as long as records regarding trading volume have been maintained. As a general rule, a market is considered bullish when it rises on increasing volume and declines on decreasing volume, and bearish when it advances on lighter volume and declines on heavier volume. Unfortunately, such rules are somewhat simplistic and subject to many exceptions. For example, a situation where volume is diminishing as markets are advancing is not necessarily followed immediately by downside reversal, although diminishing volume during advances does often provide notice of diminishing buying pressure — a reliable enough concept, if not exactly precise in its timing and application. Many attempts have been made over the years to codify trading rules based on volume, though few have been successful. One of the best known is Joseph E. Granville's on-balance volume (OBV) technique.
by Gerald Appel
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.