Artfest International, Inc (fka ARTS)

[Browng]

Sorry bux, thats not how A/D works. A/D depends on the days high, low and closing price. using these values a Close Location Value (CLV) is calculated:

( ( (C - L) - (H - C) ) / (H - L) ) = CLV

1.If the stock closes on the high, the top of the range, then the value would be plus one.

2.If the stock closes above the midpoint of the high-low range, but below the high, then the value would be between zero and one.

3.If the stock closes exactly halfway between the high and the low, then the value would be zero.

4.If the stock closes below the midpoint of the high-low range, but above the low, then the value would be negative.

5.If the stock closes on the low, the absolute bottom of the range, then the value would be minus one.

The CLV is then multiplied by the days volume and added (or substracted depending on the sign) to the cumulative sum. This forms the A/D line.


Basically if the close is lower than the high, the A/D would decrease, if the close is on the high, then the A/D would increase. A/D is very easy to manipulate on stocks like this because if you paint the close to lets say 0.0005 today, on massive volume (ie: those 1000 shares sold at 3:59pm on a trading day) then the A/D would be positive.