New Indexes

We are enhancing our services and adding new indices to our charts...

NASDAQ Transportation (^IXTR)
NASDAQ Biotechnology (^NBI)
NASDAQ Industrial (^IXID)
NASDAQ Computer (^IXK)

Once again, MarketVolume® is one step ahead of the competition. Right now, we have added new indexes to our charts. MarketVolume® is the only source of real-time intraday index volume and advance / decline, SBV, MVO charts for major US indexes and exchanges.

Now, we are raising the bar even further. From now on, our subscribers may apply volume and advance decline based technical indicators to Dow Jones Composite Averages, NASDAQ Transportation, NASDAQ Biotechnology, NASDAQ Industrial and NASDAQ Computer indexes and track sentiment changes in these market sectors. At the current moment we are the only source of these studies for these indexes.

In order to properly load new chart version, some web browsers may require you to refresh cache memory on your computer (use the Ctr-F5 button before and after login).

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NASDAQ Transportation

The NASDAQ Transportation Index has been introduced on February 5, 1971 contains covers Transportation and Airlines (delivery services, marine transportation, railroads, transportation services, trucking, and airlines) NASDAQ-listed public companies.

NASDAQ Biotechnology

The NASDAQ Biotechnology Index covers Biotechnology or Pharmaceuticals public companies listed and traded on the NASDAQ Stock Exchange. This index was introduced on November 1, 1993 with a base of 200.00 and reflect the sentiment in the biotechnology market sector.

NASDAQ Industrial

The NASDAQ Industrial Index was lunched on February 5, 1971 with a base of 100.00. This index cover the NASDAQ-listed companies which are not included in other NASDAQ sector indexes: oil and gas productions, oil equipment, forestry and paper, services & distribution, construction and materials, aerospace and defence, general industrials, chemicals, industrial metals, industrial engineering, automobiles and parts, mining, electronic and electrical equipment, beverages, food producers, household goods, leisure goods, personal goods, general retailers, media, support services, hotels, recreational services, gambling, restaurants and bars, tobacco, food and drug retailers, travel & tourism, electricity, gas distribution, water, and multi-utilities.

NASDAQ Computer

The NASDAQ Computer Index covers public companies listed and traded on the NASDAQ Stock Exchange from the Technology industry with exception of the Telecommunications Equipment companies. This index includes computer service, internet, software, computer hardware, electronic office equipment, and semiconductors companies. The NASDAQ Computer Index was introduced on November 1, 1993 with a base of 200.00.

Stay with us - And always get the latest in technical market analysis!

New Indexes

At the current moment our team is working on adding new indexes to our index charts. By the end of this month we plan to make available on our charts following U.S. indexes:

NASDAQ Biotechnology (^NBI)
NASDAQ Computer (^IXK)
NASDAQ Transportation (^IXTR)

OBV, PPO and ATR

We are enhancing our services and adding new studies (indicators) to our charts…

OBV, PPO and ATR

New charts have been installed on our server.

OBV, PPO and ATR has been added to the list of technical studies available with our charts.

The new chart version is 7.2.7.

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About On Balance Volume (OBV)

The OBV calculations are simple. The On Balance Volume is cumulative total of the negative and positive volume, where the negative volume is volume during the price decline and positive volume is volume during the price advance.

The On Balance Volume could be used as confirmation indicator as well as a tool to predict coming trend reversal.

If the OBV line moves along with the price MA (Moving Average) technical analysis tells that the OBV confirms the up-trend. At the same time the OBV decline during the price drop would confirm a down-trend. The divergence of the SBV movement and price trend could be used to anticipate possible changes in the market trend. The declining OBV during the price advance may indicate possible beginning of a new down-trend, while advancing OBV during the price decline could indicate a possibility of begging a new up-trend.

Chart 1: Nasdaq 100 index - On Balance Volume (OBV).

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About Average True Range (ATR)

The ATR indicator could be very useful in trading systems to define stock market periods of high volatility. From the chart above you may see that since August 2007 the Nasdaq 100 index has been 2-3 times more volatile. It means that from that month the Nasdaq 100 price changes its direction 2-3 time faster then before. As a result, technical indicators setting used in the period prior August 2007 may fail to generate signals after that month. The old indicators setting may simply open and close a trade when it is already too late.

As you may see the ATR helps identify high volatile period. In August 2007 by having ATR data, proficient in technical analysis trader would adjust the indicators to be more sensitive and faster react on the price changes.

Chart 2: Nasdaq 100 index - Average True Range (ATR).

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About Percentage Price Oscillator (PPO)

The PPO is a percentage representation of MACD and all principles of technical analysis used with MACD could be applied to PPO and PPO would generate signals similar to the signals generated by MACD. As a result PPO is widely used with PPO-histogram which are analyzed in the same way as MACD histogram.

The same as with MACD the PVO could be used to generate signals from:

• Divergence

• Moving Average Crossover

• Centerline Crossover

The advantage of the PPO over MACD is that because PPO is percentage based it allows comparing the PPO of various securities.

Chart 3: S&P 500 index - Percentage Price Oscillator (PPO) and MACD.

More Studies Coming

Stay with us - And always get the latest in technical market analysis!

OBV, PPO, ATR

By the end of this week we are planning to introduce PPO (Percentage Price Oscillator), OBV (On Balance Volume) and ATR (Average True Range) indicators on our charts. These indicators are well known and we believe that expanding the number of technical studies available with our charts will help our subscribers to use our charts and proprietary indicators (SBV, MVO and Advance/Decline) in junction with other popular studies.

New Highs/Lows

We just added the new page on using New Highs and New Lows indicators in technical analysis. You may find this page at
http://www.marketvolume.com/technicalanalysis/new_highs_lows.asp

main points are "a scenario when during an up-trend the number of New Highs started to decline (New Highs/Lows oscillator and ratio starts to move down) may signal a possibility of coming down-turn. At the same time, a situation when during the decline the number of New lows starts to decline (New Highs/Lows oscillator and ratio starts to move up) may signal a possibility of coming recovery."

Technical Studies

At the current moment we are working on adding following technical studies to the list of studies on our charts:

Average True Range (ATR) - ATR was developed by J. Welles Wilder to measure a security's volatility. As such, the indicator does not provide an indication of price direction or duration, simply the degree of price movement or volatility. This indicator could be used to define the market stages when the security price is highly volatile from the periods when the price does not make sudden and fast movement. By having this knowledge a trader may adjust the personal trading indicators to react faster on market trend changes or to generate signals with some delay respectively.

On Balance Volume (OBV) - OBV indicator was created by Joe Granville to measure positive and negative volume flow. OBV is calculated by adding a period's volume when the close is up and by subtracting the period's volume when the close is down. A cumulative total of the volume additions and subtractions forms the OBV line.

Percentage Price Oscillator (PPO) - The Percentage Price Oscillator calculation are similar to the PVO (Percentage Volume Oscillator) with the difference that the formula is applied to the price moving averages instead of volume moving averages. The PPO formula subtracts the longer moving average from the shorter moving average and then divides the result by the longer moving average.