KAT Exploration Inc (KATX)

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Just to keep this real, A/D should not be used as an indicator alone, It can be manipulated with price action...( sells or buys all day and a close that is opposite of the trend) < that happens in pinky land all the time with dilution and a rising A/D..I watched a stock last year that diluted 10 billion shares and the A/D was positive trending for the entire time.

"Disconnect with Prices" ( taken from stockcharts )

The Accumulation Distribution Line is an indicator based on a derivative of price and volume. This makes it at least two steps removed from the actual price of the underlying security. Moreover, the Money Flow Multiplier does not take into account prices changes from period to period. As such, it cannot be expected to always affirm price action or successfully predict price reversals with divergences. Sometimes there is a, gasp, disconnect between prices and the indicator. Sometimes the Accumulation Distribution Line simply doesn't work. This is why it vitally important to use the Accumulation Distribution Line, and all indicators for that matter, in conjunction with price/trend analysis or other indicators.