Replies to post #17555 on Global Developments Inc (GDVM)

[sportd]

Agreed price has decreased 85% yet accumulation high lol

[tothe]

Agree, it is important to use other indicators for AccumDist interpretation.
Also be aware that previously GDVM was under the Shell badge so we may have Broker Dealers with legacy Unsolicited Bid acquired shares in the offing. We do have a diverse population with 1000 share holders of record.

Disconnect with Prices
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 price 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 disconnect between prices and the indicator. Sometimes the Accumulation Distribution Line simply doesn't work. This is why it is vitally important to use the Accumulation Distribution Line, and all indicators for that matter, in conjunction with price/trend analysis and/or other indicators.
https://school.stockcharts.com/doku.php?id=technical_indicators:accumulation_distribution_line