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Biotech / Medical : IMNR - Immune Response
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To: MJ who wrote (1079)10/1/1998 11:03:00 PM
From: John S. Baker   of 1510
 
Re Leedom Reports....

The red line is net accumulation, as measured by his proprietary system, which is based somewhat upon OBV.

The black line is the stock price.

Generally, one wishes to see the red line going up, especially in a bunch of small increments.

If the accumulation line (red) and the share price diverge, that is especially significant.

If you wish to look at other examples of this, check out FBAR as an example of where Leedom's system successfully gives advance warning of a share price increase. And ESSI where the system suggests bailing out of the stock before the price drops.

I suspect that Leedom's system is actually MFI-based, rather than OBV.

And I have no clue as to what the vertical scale of the accumulation line really represents, because it can go negative, while the stock price must always be zero or greater.

Hope this helps.

JSB.
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