Nominal–On Balance Volume Curves (N-OBVs) and Volume–On Balance Curves (V-OBVs)
It has been emphasized in various chapters in this book how important On Balance Volume (OBV) was to Paul Levine's conception of the MIDAS method. In this chapter I want to introduce a new type of curve based on the On Balance Volume indicator called a Nominal–On Balance Curve (N-OBV) and its variant, the Volume–On Balance Curve (V-OBV).
This curve creates an entirely new perspective on the familiar role of standard MIDAS S/R curves as providing forecasting and market timing information based on the familiar notion, introduced in Chapter 1, of a price series being a fractal hierarchy of support and resistance levels. This new perspective is ...