Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] accumulation/distribution days
Date: Fri, 14 Dec 2001 22:01:51 -0600
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Hi Rolf,
The definitions of A & D are fairly straightforward, whether for a stock =
or a market index:
An accumulation day is one in which the price ends higher on volume =
higher than the previous day.
A distribution day is one in which the price ends lower on volume higher =
than the previous day.=20
So, for example, a warning sign that the market may be topping would be =
4 distribution days within 2 weeks.
For a stock, many would consider it a sell signal if there were 2 days =
close together that were either distribution days or were days with high =
volume and little/no price progress.
The follow-thru day is just a special application of an accumulation day =
for a market index. That is, after a market low has been printed, you're =
looking for accumulation of 2%+ within 4-7 days of the first rally off =
the low.
Katherine
- ----- Original Message -----=20
From: rolf hertenstein=20
To: canslim@lists.xmission.com=20
Sent: Friday, December 14, 2001 8:59 PM
Subject: [CANSLIM] accumulation/distribution days
Just dug through HTMMIS and IBD's Investor's Corner Archives, and I
can't seem to come up with definitions for these. Is an accumulation =
day
one in which the DOW, S&P, or NASD rise on higher volume, or do they
need the same 2% rise on volume as a FT day? Ditto for a distribution =
day -
simple drop in a major index on higher volume, or is there also a % =
drop.
Thanks!
Rolf
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<DIV><FONT face=3DArial size=3D2>Hi Rolf,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>The definitions of A & D are fairly =
straightforward, whether for a stock or a market index:</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>An accumulation day is one in which the =
price ends=20
<EM>higher</EM> on volume <EM>higher</EM> than the previous =
day.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>A distribution day is one in which the =
price ends=20
<EM>lower</EM> on volume <EM>higher</EM> than the previous day. =
</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>So, for example, a warning sign that =
the market may=20
be topping would be 4 distribution days within 2 weeks.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>For a stock, many would consider it a =
sell signal=20
if there were 2 days close together that were either distribution =
days or=20
were days with high volume and little/no price progress.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT><FONT face=3DArial =
size=3D2></FONT><FONT=20
face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>The follow-thru day is just a special =
application=20
of an accumulation day for a market index. That is, after a market low =
has been=20
printed, you're looking for accumulation of 2%+ within 4-7 days of the =
first=20
rally off the low.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Katherine</FONT></DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Drolfh@mindspring.com =
href=3D"mailto:rolfh@mindspring.com">rolf=20
hertenstein</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, December 14, 2001 =
8:59=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM]=20
accumulation/distribution days</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Just dug through HTMMIS and IBD's =
Investor's=20
Corner Archives, and I</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>can't seem to come up with =
definitions for=20
these. Is an accumulation day</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>one in which the DOW, S&P, or =
NASD rise on=20
higher volume, or do they</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>need the same 2% rise on volume as a =
FT=20
day? Ditto for a distribution day -</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>simple drop in a major index on =
higher volume, or=20
is there also a % drop.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Thanks!</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2> =
Rolf</FONT></DIV></BLOCKQUOTE></BODY></HTML>
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