...For Eric & Jeffrey too...while I'm learning...and trying to fathom the obvious discrepancy of your reads on AD...
I thought that ADI's (OBV, Williams) might be tied to the fixed available volume (float); which would imply an ignorance of new shares coming on board. This doesn't appear to be the case. Most definitions I find involve only the traded volume, irrespective of float. Thus, it seems, a drawback in the independent indicator. I thought that despite your indication that PP shares were being closely held, action to the contrary might affect the math of ADIs; and thus the divergence of opinion. Since the indicator is simple like this I'm still perplexed as to how you guys are reading so differently. Unfortunately, Eric's read seem to be right, or the influence of ADIs on BCMD TA needs to be severely reduced.
And questions...what, if any, indicator can record the influence of pp dilution? I'd guess none, since by the time you become aware of an increase in the float, the price has already reacted.
What theories are there on badly behaving ADIs?
How do you guys explain your opposite reads? (Not meant as a cut, just trying to "get it"). |
