Joe Granville introduced the On Balance Volume (OBV) indicator in his 1963 book, Granville's New Key to Stock Market Profits.A method used in technical analysis to detect momentum, the calculation of which relates volume to price change. OBV provides a running total of volume and shows whether this volume is flowing in or out of a given security.OBV attempts to detect when a … [Read more...]
Archives for 28/03/2010
Cumulative Volume Index
The Cumulative Volume Index function determines the momentum of the market by calculating the cumulative difference between the volumes of the advancing and declining issues. he Cumulative Volume Index resembles On Balance Volume, or OBV, in some respects. Both indexes were developed to demonstrate if volume is flowing into or out of the market.The CVI takes into consideration … [Read more...]
Negative Volume Index Explained
Negative Volume Index is based on days when volume is down from the previous day. Positive Volume Index is based on days when volume is up on the previous day.Basically it is an index that focuses on days where the volume has significantly decreased from the previous day's trading. The Negative Volume Index was introduced by Norman Fosback and is often used in conjunction with … [Read more...]
Silver Thursday
Silver Thursday was an event that occurred in the silver commodity markets on Thursday 27 March 1980. A steep fall in silver prices led to panic on commodity and futures exchanges. The sharp drop, on Silver Thursday, was triggered by a failed attempt to corner the silver market and it led to massive panic in other commodities. The attempt to corner the silver market was … [Read more...]