When you understand technical analysis, you realize that the only reason why the price of a stock will ever go up is because the buyers have become more aggressive than the sellers and are willing to pay higher and higher prices for a share. The only reason why the price of a stock will go down is because the sellers are more aggressive. The price chart is an accurate reflection of the price action that goes on day in and day out in the market So, in essence, the chart can always provide you with an accurate reflection of whether there is accumulation or distribution taking place. I sold one of my stocks yesterday because there was an extended bearish divergence on the hourly chart indicating that people were taking profits and perhaps selling short over an extended period of time (on an hourly chart that can be just two or three days). The stock proceeded to close at the high price for the day ($1.10) and I was beginning to wonder if I did the right thing. Today, the Price of the stock opened at $0.90 because of news released after the close yesterday about a report filed with the SEC that is perceived as being negative. The chart did not know about the report but, I knew enough to get out of the market because the chart was warning of a drop in price. That happens to me all the time! So YES, the price of ANDI did not go down because of the chart but, the chart knew that the price would go down and a trained analyst could have easily known that would happen, just as I tried to tell you it would.
