Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] accumulation/distribution days
Date: Wed, 19 Dec 2001 14:07:53 -0600
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Along with this discussion, I attempted to get some clarification on the =
DGO/IBD A/D rating. Here is my email and DGO's response: (the =
highlighting is mine)
=3D=3D=3D=3D=3D=3D=3D
Date : 12/18/01 10:35 AM
_____
Does the A/D ranking give any sort of weighting to large blocks vs.
small blocks of trade? Is it strictly based on total buying/selling? I
am trying to discern whether it favors institutional
accumulation/distribution vs. retail A/D. Also, how much weight is
applied to each of the 13 weeks activity? Is it, for example 70% current
3 weeks, etc.?
Many thanks (once again)
Katherine=20
=3D=3D=3D=3D=3D=3D=3D
Hello Katherine,
Thank you for the email.
Since it is a proprietary formula it is difficult to detail the exact
formula and weightings. The definition you have below from Daily Graphs
Online version 4.0 is a fair description of what our rating does.
ACCUMULATION/DISTRIBUTION LETTER RATING - A proprietary rating
calculated as an exponential moving average of inter- and intra-day
price and volume statistics.
It uses total trading volume, up days on high volume, up days on low
volume, down days on high volume, down days on low volume and other
statistics and generates a numeric value which is converted to our
letter rating system. We have recently added the plus/minus item as seen
in the Investor's Business Daily newspaper to the beta version of our
Daily Graphs Online to give a more precise rating. For instance a
company like ticker OVER has a rating of "B" in the standard version of
DG while the beta version of DG has a rating of "B+."
Sorry we could not be of more help in this instance. Please email us if
you have any other comments, suggestions or questions.
Sincerely,
Paul
Daily Graphs Online
----- Original Message -----=20
From: Tom Worley=20
To: canslim@lists.xmission.com=20
Sent: Saturday, December 15, 2001 6:31 AM
Subject: Re: [CANSLIM] accumulation/distribution days
Gotcha, that makes sense.
Tom Worley
stkguru@netside.net
AIM: TexWorley
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Saturday, December 15, 2001 6:49 AM
Subject: Re: [CANSLIM] accumulation/distribution days
Hi Tom,
I think it's semantics, so I'll stick with WON words again:
What you are describing is what WON refers to as "a stock under =
accumulation" or a "stock under distribution." This is reflected in =
measures like DGO/IBD's weighted average of A/D over the last 13 weeks. =
(Values A to E) It describes the persistency of =
accumulation/distribution over a period of time.
This is different than "an accumulation day" or "a distribution day" =
for the stock or market, which is what I defined. This is a single day's =
action rather than action over a period of time. When you read the Big =
Picture, they do not distinguish who is buying to determine if a day is =
an accumulation or distribution day. However, it is one reason why they =
talk about "subtle distribution" at market tops, i.e., high volume with =
little or no price movement up.
Subtle differences, but with different applications.
Katherine
----- Original Message -----=20
From: Tom Worley=20
To: canslim@lists.xmission.com=20
Sent: Saturday, December 15, 2001 4:39 AM
Subject: Re: [CANSLIM] accumulation/distribution days
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,
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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<BODY bgColor=3D#ffffff>
<DIV><FONT face=3DArial size=3D2>Along with this discussion, I attempted =
to get some=20
clarification on the DGO/IBD A/D rating. Here is my email and DGO's =
response:=20
(the highlighting is mine)</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>=3D=3D=3D=3D=3D=3D=3D</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV>Date : 12/18/01 10:35 AM<BR> _____<BR>Does the A/D ranking =
give any=20
sort of weighting to large blocks vs.<BR>small blocks of trade? Is it =
strictly=20
based on total buying/selling? I<BR>am trying to discern whether it =
favors=20
institutional<BR>accumulation/distribution vs. retail A/D. Also, how =
much weight=20
is<BR>applied to each of the 13 weeks activity? Is it, for example 70%=20
current<BR>3 weeks, etc.?<BR><BR>Many thanks (once again)<BR>Katherine =
</DIV>
<DIV>=3D=3D=3D=3D=3D=3D=3D</DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV>Hello Katherine,<BR><BR>Thank you for the email.<BR><BR>Since it is =
a=20
proprietary formula it is difficult to detail the exact<BR>formula and=20
weightings. The definition you have below from Daily Graphs<BR>Online =
version=20
4.0 is a fair description of what our rating=20
does.<BR><BR>ACCUMULATION/DISTRIBUTION LETTER RATING - A proprietary=20
rating<BR>calculated as an exponential moving average of inter- and=20
intra-day<BR>price and volume statistics.<BR><BR><STRONG><EM><FONT=20
color=3D#0000ff>It uses total trading volume, up days on high volume, up =
days on=20
low<BR>volume, down days on high volume, down days on low volume and=20
other<BR>statistics and generates a numeric value which is converted to=20
our<BR>letter rating system.</FONT></EM></STRONG> We have recently added =
the=20
plus/minus item as seen<BR>in the Investor's Business Daily newspaper to =
the=20
beta version of our<BR>Daily Graphs Online to give a more precise =
rating. For=20
instance a<BR>company like ticker OVER has a rating of "B" in the =
standard=20
version of<BR>DG while the beta version of DG has a rating of =
"B+."<BR><BR>Sorry=20
we could not be of more help in this instance. Please email us if<BR>you =
have=20
any other comments, suggestions or =
questions.<BR><BR>Sincerely,<BR>Paul<BR>Daily=20
Graphs Online</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 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 title=3Dstkguru@netside.net href=3D"mailto:stkguru@netside.net">Tom =
Worley</A>=20
</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> Saturday, December 15, =
2001 6:31=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM]=20
accumulation/distribution days</DIV>
<DIV><BR></DIV>
<DIV><FONT size=3D2>Gotcha, that makes sense.</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"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-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 title=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</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>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Saturday, December 15, =
2001 6:49=20
AM</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 Tom,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>I think it's semantics, so I'll =
stick with WON=20
words again:</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>What you are describing is what WON =
refers to=20
as "a stock <EM>under</EM> <EM>accumulation</EM>" or a "stock =
<EM>under</EM>=20
<EM>distribution</EM>." This is reflected in measures like DGO/IBD's =
weighted average of A/D over the last 13 weeks. (Values A to =
E) It=20
describes the <EM>persistency</EM> of accumulation/distribution over =
a=20
period of time.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>This is different than "an =
<EM>accumulation=20
day</EM>" or "a <EM>distribution</EM> <EM>day</EM>" for the stock or =
market,=20
which is what I defined. This is a single day's action =
rather than=20
action over a period of time. When you read the Big Picture, they do =
not=20
distinguish <EM>who</EM> is buying to determine if a day is an =
accumulation=20
or distribution day. However, it is one reason why they talk about =
"subtle=20
distribution" at market tops, i.e., high volume with little or no =
price=20
movement up.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Subtle differences, but with =
different=20
applications.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Katherine</FONT></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 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 title=3Dstkguru@netside.net =
href=3D"mailto:stkguru@netside.net">Tom=20
Worley</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Saturday, December =
15, 2001=20
4:39 AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM]=20
accumulation/distribution days</DIV>
<DIV><BR></DIV>
<DIV><FONT size=3D2>Katherine, I must disagree somewhat on this. =
You=20
describe what is probably a more traditional definition. But =
different=20
sites will do it differently. DGO describes it as the result of a=20
proprietary formula (so we don't get to know how they calculate =
it) which=20
analyzes each days trading activity for both price and volume, and =
over a=20
13 week period.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>One feature I really like, and use, with my =
quote=20
service at FreeRealTime is a VWAP (Volume Weighed Average Price). =
I can=20
look at it any time of the day and tell if a stock is being =
accumulated or=20
distributed.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>When I was an active broker, and getting first =
hand=20
trading by WON staffers, the way they explained Accum / Dist to me =
was=20
that accumulation was when the funds were buying it, distribution =
was when=20
the funds were selling it to retail buyers. This latter situation =
is often=20
characterized by high volume with little if any price gain. I =
suspect the=20
DG / DGO proprietary formula is 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"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-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 title=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, December =
14, 2001=20
11:01 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=20
price 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=20
price ends <EM>lower</EM> on volume <EM>higher</EM> than the =
previous=20
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=20
market may be topping would be 4 distribution days within 2=20
weeks.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>For a stock, many would =
consider it a sell=20
signal if there were 2 days close together that were either =
distribution=20
days or were days with high volume and little/no price=20
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=20
application of an accumulation day for a market index. That is, =
after a=20
market low has been printed, you're looking for accumulation of =
2%+=20
within 4-7 days of the 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"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=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, December =
14, 2001=20
8:59 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=20
Investor's Corner Archives, and I</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>can't seem to come up with =
definitions=20
for these. Is an accumulation day</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>one in which the DOW, =
S&P, or NASD=20
rise on 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=20
volume, 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></BLOCKQUOTE></BLOCKQUOTE></BL=
OCKQUOTE></BODY></HTML>
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