RE: [CANSLIM] Accumulation / Distribution formula

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: RE: [CANSLIM] Accumulation / Distribution formula
Date: Mon, 11 Aug 2003 19:24:25 -0500

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Hi blfauaus,

The formula shown is a generic A/D formula and is not the same as IBD's
proprietary indicator. The IBD indicator uses a formula which takes into
account the accumulation vs distribution action and is based on an average
for the prior 13 weeks.

In the CANSLIM context, the following definitions are key:
"accumulation" = up days on volume higher than the previous day.
"strong accumulation" = up days on volume higher than the previous day and
above the average daily volume
"distribution" = down days on volume higher than the previous day.
"strong distribution" = down days on volume higher than the previous day and
above the average daily volume

You'll notice that the more generic A/D ratio quoted below does not use this
same definition of accumulation and distribution.

Katherine

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of bflauaus
Sent: Monday, August 11, 2003 6:26 PM
To: canslim@lists.xmission.com
Subject: RE: [CANSLIM] Accumulation / Distribution formula


Based upon that formula, does WON use a 50-day or 200-day average to
calculate accumulation?

Food for thought

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Mike
Sent: Monday, August 11, 2003 5:07 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Accumulation / Distribution formula



A portion of each day's volume is added or subtracted from a cumulative
total. The nearer the closing price is to the high for the day, the more
volume added ...

summation of (((close-low)-(high-close)) / (high-low)) * volume)

Ref: http://www.equis.com/Education/TAAZ/?page=27

Mike



> > Hello all,
> >
> > I'm trying to write my own "stock screening" program.
> > I have Open,Close,High,Low,Volume and some data
> > related to earnings.
> >
> > Does anybody know a good formula to find/get the
> > Accumulation/Distribution for an individual stock?
> > WON has been mentioning his formula in HTMMIS as a
> > propietary formula so I guess I can't use the one he
> > is using or at least he won't let us know how he did
> > it.
> >
> > Thanks,
> >
> > Peter
> >


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