5 replies to this topic

[Woody]

Looking at QLD's OBV on a daily and noticed the prominent divergences with price. Looking at late Feb one would conclude that the higher OBV and lower QLD Price was a positive divergence; similarly, the recent lower low in OBV and the higher bottom in QLD should be a negative divergence........

maybe I'm reading too much into this but the opposite seems to happen making me think that the OBV in this case is a contrarian sentiment indicator of sorts....

recent (loose) interpretation being that traders do not believe in the recent QLD rally and are eager to jump in on down days...

QID seems to have a similar pattern.....

A longer term study is likely a good idea but for now...its an observation



http://stockcharts.c...5254&r=1991.png

[golden]

Looking at QLD's OBV on a daily and noticed the prominent divergences with price. Looking at late Feb one would conclude that the higher OBV and lower QLD Price was a positive divergence; similarly, the recent lower low in OBV and the higher bottom in QLD should be a negative divergence........

maybe I'm reading too much into this but the opposite seems to happen making me think that the OBV in this case is a contrarian sentiment indicator of sorts....

recent (loose) interpretation being that traders do not believe in the recent QLD rally and are eager to jump in on down days...

QID seems to have a similar pattern.....

A longer term study is likely a good idea but for now...its an observation



http://stockcharts.c...5254&r=1991.png

And a very good observation it is.

Joe Granville created and mastered this useful trading tool, and I would
guess he would be shorting any rallys here.

Only time will tell.....

[skott]

also notice possible double top with double left shoulder and now possibly forming double right shoulder......... best viewed on QQQQ chart

[relax]

What exactly are trying to say?;-)

Back in february OBV had a rising trend unlike QLD - and the (positive) divergence led to a drop

Now we have a falling OBV trend with a rising QLD trend - a negative divergence - are you saying that this should lead to a drop

I agree that the negative divergence is negative - but if the positive divergence didn't indicate strength, is it then fair to assume that the negative divergence indicates weakness

I'm trading in Europe , so if you could please also explain what QLD represents

Regards ;-)

Looking at QLD's OBV on a daily and noticed the prominent divergences with price. Looking at late Feb one would conclude that the higher OBV and lower QLD Price was a positive divergence; similarly, the recent lower low in OBV and the higher bottom in QLD should be a negative divergence........

maybe I'm reading too much into this but the opposite seems to happen making me think that the OBV in this case is a contrarian sentiment indicator of sorts....

recent (loose) interpretation being that traders do not believe in the recent QLD rally and are eager to jump in on down days...

QID seems to have a similar pattern.....

A longer term study is likely a good idea but for now...its an observation



http://stockcharts.c...5254&r=1991.png

[Rogerdodger]

I'm trading in Europe , so if you could please also explain what QLD represents

QLD is a newer etf.
It is double long. It moves nearly 200% of the QQQQ (Nasdaq 100)

Edited by Rogerdodger, 04 April 2007 - 10:37 PM.

[relax]

Appreciated!

I'm trading in Europe , so if you could please also explain what QLD represents

QLD is a newer etf.
It is double long. It moves nearly 200% of the QQQQ (Nasdaq 100)