Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Knitwit who wrote (17976)	11/3/1998 1:15:00 PM
From: Jenna	Respond to of 120523

CYBX doing well and an explanation of stock being "under ACCUMULATION" question that I get sometimes in my e-mail CYBX...I was expecting a trend reversal last night after looking at the chart. the MACD was bullish and the up/down volume ratio (by the way, I was asked if this is the same as 1/30 day volume indicator and it is NOT) shows that CYBX is under accumulation. The meaning of that is below: When stock is under ACCUMULATION it means that its trading activity over the past 50 days is compared with other companies. For each of those 50 days, the stock's volume is multiplied by its change in price; then those 50 numbers are combined into one value. Stocks with the highest values are those which have the most volume on their up days. So you are simply compared the 50 day rato of a stock's daily UP-volume with its Daily down volume. You don't have to calculate this yourself. Metastock, telescan and other software does this for you. the one I use has readings where a 1 and greater means Accumulation and below 1.0 it is under distribution. This ratio is calculated by dividing under Distribution.the total volume on days when a stock closed Up by the total volume on days it closes Down. Readings of 1.0 and greater denote Accumulation while readings under 1.0 are signals that the stock is I usually use two software programs to compare the ACCUMULATION because if one is proprietary I'd like to get what is called a 'second opinion'... That I get from telescan or even IQ charts on the internet. They all score their accumulation values a bit differently but the results are the same. the 1/30 volume indicator means that the stock has higher volume that the total average 30 or 50 day volume. I use that in the 150% range because you like your stock to break out on high volume.