While I appreciate TA and how it can help predict a stocks movement, it only tells part of the story. Dilution occurs when a company issues more stock. A company cant just turn on the printing press and do this without anyone know it. Securities forms need to be filed, blah blah blah. We all would know when/if Ron would need to go to the well again.
I think the tool you are using (correct me if I am wrong) when you say dilution is the accumulation/distribution index. Its works like on-balance volume. When the indicator moves up, it shows the security being accumulated with increasing volume on the way up. When the indicator goes down, it is showing that the security is being distributed on the way down in volume.
Basically, its reiterating the point that when you see big volume and a big move in either direction, its often a sign that precedes/coincides with a big event. Sometimes caused by fundamental news, sometimes by TA alone. Either way its a lot of selling or a lot of buying thats caused by a catalyst.
Hope that helps, correct me I am way off.
