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Re: tynich01 post# 102821

Monday, 02/10/2014 4:32:40 PM

Monday, February 10, 2014 4:32:40 PM

Post# of 148342
The Accumlation/Distribution Line (ADL) can be manipulated up or down by tiny EOD trades that artificially set the closing price. It can also be manipulated up by trades intended to set an artifical low price for the day.

A declining ADL doesn't necessarily mean that a stock is being diluted any more than an increasing ADL means that there is no dilution.

The main point is that the ADL is not a reliable indicator to use in analyzing expected future stock performance. In the case of PVEC, tiny trades set artificial lows of $.0001 as well as daily closing paint jobs at $.0003 both contributed to the ADL being manipulated to the upside. The apparent increase in PVEC's ADL is misleading and meaningless.

Anyone who makes buy or sell decisions based on techical analysis or "charting" should research what such technicial indicators supposedly indicate, how they are calculated and their historic reliability in predicting future performance.