HVAR ... Havana Republic, Inc. (Tobacco Gold) Message Board

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Microcap & Penny Stocks : HVAR ... Havana Republic, Inc. (Tobacco Gold)

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To: Jonathan Lebed who wrote (602)	7/16/1998 4:49:00 PM
From: conrad grant	Read Replies (1) of 728

Jon, I have the same understanding of the acc/dist indicator as you, e.g. If stck goes down on on high volume, acc/dist will plummet. I think everyone agrees to that. What the argument seems to be is; what does 'the stck goes down on high volume (acc/dist plummeting)' really indicate. I think you can make the presumption that this might/probably/could indicate that there is a good/better that average chance that someone with many shares (e.g. insiders,funds,etc) is selling. Does it ensure this? No. As you state, volume and price cannot alone positively identify the sellers. I believe the Acc/dist is an INDICATION of the PROBABILITY of big boys selling (or buying if the converse is true). Personally I have had the same reservations with the indicator as it can be swayed greatly by large volume and minimal price swing. But I do like to watch it for possible warning signs... Its not a worthless indicator. On the other hand it certainly is not flawless. Conrad

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