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Re: Dank02 post# 346721

Friday, 12/26/2014 4:33:23 PM

Friday, December 26, 2014 4:33:23 PM

Post# of 375420
The A/D line on the daily chart is meaningless for stocks trading like Q trades.

The indicator shows accumulation when it closes on the ask, and distribution when it closes on the bid, regardless of how many shares traded at the ask or at the bid.

For example, it could dump 250 million shares at .0002, and close at .0003 on a 1000 share trade, and the A/D indicator would show massive accumulation for the day since the entire volume would be considered accumulation while in reality it was massive distribution.

Heavily diluted stocks almost ALWAYS show large accumulation since the seller will almost ALWAYS paint the close at the ask...


Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y