Cascadia Investments (CDIV)

[Ninja7]

Hi kando...love the animations (previously person marked you for them). I do have one comment on the A/D indicator you show for the 1 min chart: I don't think it means anything, and I actually think it's being calculated/displayed incorrectly (it's from e-trade, right?). Here's why...

The formula for A/D is ((C - L) - (H - C))/(H - L) times the volume for the period (where C=Close, L=Low, and H=High). For any period in which Close=High=Low (which is almost every period in the 1 minute chart) the value should be zero. In other words, the A/D line should never move unless you get an actual candle for one of the periods (which is rare for the 1 min charts with such infrequent trades). The A/D line should really just sit at zero (flatline) for the entire day.

Another way to say this is that the A/D line only tells you something when it is calculated for time periods in which at least a couple trades occur during the time period. In the case of CDIV's low volume these days, you really don't get any useful information from the A/D line until you move up to a 60 minute chart and above. If you plot it for 60 minute or daily charts (assuming we believe anything the chart is telling us with a FLD), you actually see it indicating that CDIV is being accumulated in spite of the gradual PPS decline over the past several weeks.

Anyway, I'm not trying to give you a hard time. I love the daily animations. I just don't want any of us ready anything into the 1 min A/D line, since it's not being calculated correctly.

Finally, if this didn't make sense, use stockcharts to plot the A/D line for different time periods, and you'll see what I mean (as stockcharts seems to calculate it correctly).