Replies to post #64756 on Ubiquitech Software Corp (UBQU)

[Joe Burmeister]

Per investopedia, you have the numerator and denominator reversed.

https://www.investopedia.com/terms/a/accumulationdistribution.asp

So the A/D really adds to the previous day’s volume if today price finishes in the upper half of the day’s range, and subtracts the volume if the today’s price finishes in the lower half. This strategy is susceptible to manipulation. If someone paints the price up every day …which typically happens, then the A/D line increases. Also the A/D has no memory I.e. you can gap down significantly but as long as the price actions end up near the top of the day’s range, the A/D goes up even though your share price plummeted from the previous day’s close.

Like everything else, you have to use the A/D in conjunction with other indicators. It shouldn’t be your only criteria.