Go to Jeff Salisbury LWGate Home Page.From: Eric Jaenike <ericjaenike@yahoo.com>
Subject: RE: [CANSLIM] U/D algorithm
Date: Thu, 16 Jan 2003 09:15:27 -0800 (PST)
Previous Article (by Date): RE: [CANSLIM] U/D algorithm "Katherine Malm"
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- --0-50385122-1042737327=:41103 Content-Type: text/plain; charset=us-ascii Thanks. Chaikin MF also has issues (as do all indicators, which is why the derivation needs to be understood, and why there is no substitute for eyeballing a chart, IMO). One of Chaikin's big problems, of course, comes with gaps. Eric Katherine Malm <kmalm@earthlink.net> wrote:Hi Eric, The U/D ratio is very simple and so has it's peculiar drawbacks, among which single big up or down days can distort the measure fairly easily. Like most technical indicators, it's just a quick way of summarizing what you can see in the Price/Volume action itself: U/D Definition: A 50-day ratio that is derived by dividing total volume on up days by the total volume on down days. A ratio greater than 1.0 implies positive demand for a stock. My understanding of Chaikin Money Flow (and his associated Accum/Distribution metric) is that it is much closer to IBD's A/D reading, as it looks at the closes relative to the day's range to determine buying/selling pressure. Katherine-----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Eric Jaenike Sent: Thursday, January 16, 2003 10:42 AM To: canslim group Subject: [CANSLIM] U/D algorithm I've been comparing the U/D ratio used by IBD to Chaikin Money Flow. Does anyone have any info on the algorithm for U/D, or whether its an open/closed indicator, etc? Thanks, Eric - --------------------------------- Do you Yahoo!? Yahoo! Mail Plus - Powerful. Affordable. Sign up now - --------------------------------- Do you Yahoo!? Yahoo! Mail Plus - Powerful. Affordable. Sign up now - --0-50385122-1042737327=:41103 Content-Type: text/html; charset=us-ascii <P>Thanks. Chaikin MF also has issues (as do all indicators, which is why the derivation needs to be understood, and why there is no substitute for eyeballing a chart, IMO). One of Chaikin's big problems, of course, comes with gaps. <P>Eric <P> <B><I>Katherine Malm <kmalm@earthlink.net></I></B> wrote: <BLOCKQUOTE style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #1010ff 2px solid"> <META content="MSHTML 6.00.2800.1126" name=GENERATOR> <DIV><SPAN class=156395916-16012003>Hi Eric,</SPAN></DIV> <DIV><SPAN class=156395916-16012003></SPAN> </DIV> <DIV><SPAN class=156395916-16012003>The U/D ratio is very simple and so has it's peculiar drawbacks, among which single big up or down days can distort the measure fairly easily. Like most technical indicators, it's just a quick way of summarizing what you can see in the Price/Volume action itself:</SPAN></DIV> <DIV><SPAN class=156395916-16012003></SPAN> </DIV> <DIV><SPAN class=156395916-16012003><FONT size=2> </FONT><FONT size=3>U/D Definition: A 50-day ratio that is derived by dividing total volume on up days by the total volume on down days. A ratio greater than 1.0 implies positive demand for a stock.</FONT></SPAN></DIV> <DIV><SPAN class=156395916-16012003></SPAN> </DIV> <DIV><SPAN class=156395916-16012003>My understanding of Chaikin Money Flow (and his associated Accum/Distribution metric) is that it is much closer to IBD's A/D reading, as it looks at the closes relative to the day's range to determine buying/selling pressure.</SPAN></DIV> <DIV><SPAN class=156395916-16012003></SPAN> </DIV> <DIV><SPAN class=156395916-16012003>Katherine</SPAN></DIV> <BLOCKQUOTE> <DIV class=OutlookMessageHeader dir=ltr align=left><FONT face=Tahoma size=2>-----Original Message-----<BR><B>From:</B> owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of </B>Eric Jaenike<BR><B>Sent:</B> Thursday, January 16, 2003 10:42 AM<BR><B>To:</B> canslim group<BR><B>Subject:</B> [CANSLIM] U/D algorithm<BR><BR></FONT></DIV> <P>I've been comparing the U/D ratio used by IBD to Chaikin Money Flow. Does anyone have any info on the algorithm for U/D, or whether its an open/closed indicator, etc?</P> <P>Thanks,</P> <P>Eric</P> <P><BR> <HR SIZE=1> Do you Yahoo!?<BR><A href="http://rd.yahoo.com/mail/mailsig/*http://mailplus.yahoo.com">Yahoo! Mail Plus</A> - Powerful. Affordable. <A href="http://rd.yahoo.com/mail/mailsig/*http://mailplus.yahoo.com">Sign up now</A></BLOCKQUOTE></BLOCKQUOTE><p><br><hr size=1>Do you Yahoo!?<br> <a href="http://rd.yahoo.com/mail/mailsig/*http://mailplus.yahoo.com">Yahoo! Mail Plus</a> - Powerful. Affordable. <a href="http://rd.yahoo.com/mail/mailsig/*http://mailplus.yahoo.com">Sign up now</a> - --0-50385122-1042737327=:41103-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
Previous Article (by Date): RE: [CANSLIM] U/D algorithm "Katherine Malm"
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