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Title: CLASH of INDICATORS: OBV vs. ACC./DIST. which one is right ATM? Post by: Spekulatius on June 16, 2013, 09:08:23 PM http://picload.org/image/awcgpcr/unbenannt.png
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:accumulation_distrib Discuss! I: Notice the paragraph in the link provided where it is explained that OBV and A/D can diverge in case of opening/closing gaps between candles. In Bitcoin's 24/7 trading rhytm this is however not possible. So why are those indicators diverging that harshly and which one can be trusted right now? Title: Re: CLASH of INDICATORS: OBV vs. ACC./DIST. which one is right ATM? Post by: ElectricMucus on June 16, 2013, 09:42:05 PM Honestly I can't imagine anybody using those indicators consistently and successful.
Title: Re: CLASH of INDICATORS: OBV vs. ACC./DIST. which one is right ATM? Post by: chriswilmer on June 17, 2013, 12:09:44 AM What is this divergence you speak of? They look like they are following each other very closely... ?
Title: Re: CLASH of INDICATORS: OBV vs. ACC./DIST. which one is right ATM? Post by: notme on June 17, 2013, 12:12:49 AM What is this divergence you speak of? They look like they are following each other very closely... ? A/D has maintained a stronger uptrend than OBV. Title: Re: CLASH of INDICATORS: OBV vs. ACC./DIST. which one is right ATM? Post by: Spekulatius on June 17, 2013, 01:19:44 AM What is this divergence you speak of? They look like they are following each other very closely... ? A/D is at an all time high. It is already 42% higher then at the top of the price's all time high of 266$/BTC. Because A/D and price can be correlated with one another, so if A/D goes up over a continued amount of time, while price goes down (or does nothing) then this is a growing indicator for upwards correction. The divergance at hand would in this context provoke an upwards correction to 284 $/BTC if A/D can be trusted right now (of course those are just rough estimates since this is no exact science but you get my point). OBV is basically the same thing with a little differently tweaked formula so most of the time the indicate the same thing for Bitcoin. But it is in contrast to A/D 20% lower then its all time high (NOTE: oth of OBV was at around 166$/BTC, not 266$/BTC!), which translated into $/BTC would put us to 130$/BTC. This is a 120% divergance (130$ vs. 284$), so which indicator can be trusted more in this case? Title: Re: CLASH of INDICATORS: OBV vs. ACC./DIST. which one is right ATM? Post by: Crypt_Current on June 17, 2013, 01:36:34 AM What is this divergence you speak of? They look like they are following each other very closely... ? A/D is at an all time high. It is already 42% higher then at the top of the price's all time high of 266$/BTC. Because A/D and price can be correlated with one another, so if A/D goes up over a continued amount of time, while price goes down (or does nothing) then this is a growing indicator for upwards correction. The divergance at hand would in this context provoke an upwards correction to 284 $/BTC if A/D can be trusted right now (of course those are just rough estimates since this is no exact science but you get my point). OBV is basically the same thing with a little differently tweaked formula so most of the time the indicate the same thing for Bitcoin. But it is in contrast to A/D 20% lower then its all time high (NOTE: oth of OBV was at around 166$/BTC, not 266$/BTC!), which translated into $/BTC would put us to 130$/BTC. This is a 120% divergance (130$ vs. 284$), so which indicator can be trusted more in this case? ::: dons bull horns ::: Title: Re: CLASH of INDICATORS: OBV vs. ACC./DIST. which one is right ATM? Post by: Spekulatius on June 28, 2013, 08:34:30 PM Title: Re: CLASH of INDICATORS: OBV vs. ACC./DIST. which one is right ATM? Post by: Spekulatius on June 28, 2013, 08:35:21 PM Still dont believe me? Lets turn up the graphical violence! http://bitcoincharts.com/charts/chart.png?width=940&m=mtgoxUSD&SubmitButton=Draw&r=&i=Daily&c=0&s=&e=&Prev=&Next=&t=C&b=&a1=&m1=10&a2=&m2=21&x=1&i1=OBV&i2=AccDist&i3=&i4=&v=1&cv=1&ps=0&l=0&p=0& |
