Market-letter writer; creator of On-Balance Volume
Joseph E. Granville
Joseph E. Granville (1923–2013) was an American financial writer and seminar speaker who published The Granville Market Letter from 1963 until shortly before his death. He developed and popularised On-Balance Volume (OBV) and wrote early books on the 200-day moving average and daily market timing. His January 1981 sell call was widely blamed for a sharp one-day market drop.
What they argue
- Volume moves ahead of price: a running total of volume on up days minus volume on down days (OBV) can reveal accumulation or distribution before price confirms it.
- The 200-day moving average defines the major trend: price crossing above a 200-day average that has flattened or turned up is a buy, and price breaking below a flattening or falling average is a sell.
- Market timing should rest on many daily technical indicators read together, not a single gauge.
Sources
Summaries are Be The Puck's paraphrase of public material. Be The Puck has no affiliation with the people listed.
Books and papers
- A Strategy of Daily Stock Market Timing for Maximum Profit (1960)
- Granville's New Key to Stock Market Profits (1963)
- Granville's New Strategy of Daily Stock Market Timing for Maximum Profit (1976)
- Granville's Last Stand (1995)
Granville's 200-day buy and sell rules
Rule and full recordTrend following · daily
Granville's first buy rule and fifth sell rule: buy when price is above a 200-day average that has stopped falling, sell when it drops below.
Best risk-adjusted results against buy and hold:
Granville's on-balance volume trend
Rule and full recordVolume & money flow · daily
A running total of volume: add it on up days, subtract it on down days. Rising OBV says buyers are accumulating.
Best risk-adjusted results against buy and hold: