Volume bar spikes skewing indicators

Discussion in 'Technical Analysis' started by Bolimomo, Mar 29, 2010.

  1. I have been observing this. It's an everyday occurrence. Somebody would throw out a huge price/volume report out there. I have been scratching my head. Does somebody do it on purpose to screw up some of the volume-based indicators such as OBV and market profile. I am sure no such number of shares of that stock traded during that 1 minute, but just a reporting thing.

    Examples today 3/29/10:

    (1-minute chart)

    AAPL volume 2.2 million price 232.30 or so @ around 2:55 pm (E).

    GS volume 1.2 million price 172.10 or so @ around 2:20 pm (E).

    My OBV went out of whack and the market profile (VAP - volume at price) is skewed.
  2. no trust me, they want you trading your OBV and MP indicators.
  3. Start using Constant volume Bar charting and you won't have that problem.