Go to Jeff Salisbury LWGate Home Page.From: "Tom Worley" <stkguru@netside.net>
Subject: Re: [CANSLIM] accumulation/distribution days
Date: Sat, 15 Dec 2001 05:39:17 -0500
Next Article (by Subject): Re: [CANSLIM] clarification "rolf hertenstein"
Previous Article (by Subject): Re: [CANSLIM] accumulation/distribution days "Katherine Malm"
Top of Thread: [CANSLIM] accumulation/distribution days "rolf hertenstein"
Articles sorted by: [Date]
[Author]
[Subject]
This is a multi-part message in MIME format.
- ------=_NextPart_000_003B_01C1852A.D65E27E0
Content-Type: text/plain;
charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable
Katherine, I must disagree somewhat on this. You describe what is =
probably a more traditional definition. But different sites will do it =
differently. DGO describes it as the result of a proprietary formula (so =
we don't get to know how they calculate it) which analyzes each days =
trading activity for both price and volume, and over a 13 week period.
One feature I really like, and use, with my quote service at =
FreeRealTime is a VWAP (Volume Weighed Average Price). I can look at it =
any time of the day and tell if a stock is being accumulated or =
distributed.
When I was an active broker, and getting first hand trading by WON =
staffers, the way they explained Accum / Dist to me was that =
accumulation was when the funds were buying it, distribution was when =
the funds were selling it to retail buyers. This latter situation is =
often characterized by high volume with little if any price gain. I =
suspect the DG / DGO proprietary formula is weighed along similar lines.
Tom Worley
stkguru@netside.net
AIM: TexWorley
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Friday, December 14, 2001 11:01 PM
Subject: Re: [CANSLIM] accumulation/distribution days
Hi Rolf,
=20
The definitions of A & D are fairly straightforward, whether for a =
stock or a market index:
=20
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
=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.
=20
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.
=20
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.
=20
Thanks!
=20
Rolf
- ------=_NextPart_000_003B_01C1852A.D65E27E0
Content-Type: text/html;
charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META content=3D"text/html; charset=3Diso-8859-1" =
http-equiv=3DContent-Type>
<META content=3D"MSHTML 5.00.2314.1000" name=3DGENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV><FONT size=3D2>Katherine, I must disagree somewhat on this. You =
describe what=20
is probably a more traditional definition. But different sites will do =
it=20
differently. DGO describes it as the result of a proprietary formula (so =
we=20
don't get to know how they calculate it) which analyzes each days =
trading=20
activity for both price and volume, and over a 13 week =
period.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>One feature I really like, and use, with my quote =
service at=20
FreeRealTime is a VWAP (Volume Weighed Average Price). I can look at it =
any time=20
of the day and tell if a stock is being accumulated or =
distributed.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>When I was an active broker, and getting first hand =
trading by=20
WON staffers, the way they explained Accum / Dist to me was that =
accumulation=20
was when the funds were buying it, distribution was when the funds were =
selling=20
it to retail buyers. This latter situation is often characterized by =
high volume=20
with little if any price gain. I suspect the DG / DGO proprietary =
formula is=20
weighed along similar lines.</FONT></DIV>
<DIV> </DIV>
<DIV>Tom Worley<BR><A=20
href=3D"mailto:stkguru@netside.net">stkguru@netside.net</A><BR>AIM:=20
TexWorley<BR></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: =
0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A href=3D"mailto:kmalm@earthlink.net" =
title=3Dkmalm@earthlink.net>Katherine=20
Malm</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
href=3D"mailto:canslim@lists.xmission.com"=20
title=3Dcanslim@lists.xmission.com>canslim@lists.xmission.com</A> =
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, December 14, 2001 =
11:01=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM]=20
accumulation/distribution days</DIV>
<DIV><BR></DIV>
<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=20
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=20
ends <EM>higher</EM> on volume <EM>higher</EM> than the previous=20
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=20
may 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=20
been printed, you're looking for accumulation of 2%+ within 4-7 days =
of the=20
first 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"BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; =
MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A href=3D"mailto:rolfh@mindspring.com" =
title=3Drolfh@mindspring.com>rolf=20
hertenstein</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
href=3D"mailto:canslim@lists.xmission.com"=20
title=3Dcanslim@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,=20
or 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> =20
Rolf</FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
- ------=_NextPart_000_003B_01C1852A.D65E27E0--
- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim". Do not use quotes in your email.
Next Article (by Subject): Re: [CANSLIM] clarification "rolf hertenstein"
Previous Article (by Subject): Re: [CANSLIM] accumulation/distribution days "Katherine Malm"
Top of Thread: [CANSLIM] accumulation/distribution days "rolf hertenstein"
Articles sorted by: [Date]
[Author]
[Subject]