For You Volume Aficionados, by Bill Rafter
There is an upcoming article in TAS&C (April 2010) by David G. Hawkins that deals with modifying Price Volume Trend Indicator, a 1980 variation of Granville's OBV indicator. The article is chart-based rather than statistics-based, but there are a number of talented readers who could correct that, should they wish. The article references two contributions to TAS&C by Larry Williams (2000 and 2004). What is interesting to us is that he overlays a linear-scaled indicator onto a log-scaled price, recognizing that most indicators behave linearly while equity prices do not. We had long noted that, but never thought of superimposing the one chart onto the other.
Dr. Rafter is President of Mathematical Investment Decisions, a quantitative research consultancy