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• OVR - a new indicator by Fred Purifoy

  ARTICLE SYNOPSIS ...OVR - a new indicator by Fred Purifoy On-balance volume (OBV) has two generally recognized goals: to serve as a filter for trending and non-trending markets, and to anticipate reversals by divergence from the price trend. (OBV, recall, is the cumulative sum of volume where volume is added on up days and subtracted on down days.) However, coupling price and volume may not be the only path. If we accept that vertical (or bar) chart action is a function of volume and open interest (i.e., the activity of the market's participants), there should be an indicator that would reflect that relationshi...

AUTHOR: Fred PurifoyDATE: APR 1988