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How to capture a rising accumulation line over time, 4-8 weeks

Towen
Towen ✭
in Scanning
Since fund managers taking a position buy and sell over a period of time to keep the price from rising too much while accumulating their position, and the accumulation line has no numerical value, can a rising accumulation line over 4-6 weeks be coded for and captured effectively?

Are any of these viable options?

//and [Slope (42,AccDist) > 0]

//and [today's AccDist > 5 days ago AccDist]
//and [5 days ago AccDist > 10 days ago AccDist]
//and [10 days ago AccDist > 15 days ago AccDist]
//and [15 days ago AccDist > 20 days ago AccDist]
//and [20 days ago AccDist > 25 days ago AccDist]

AND [Daily AccDist > Daily AccDist Signal (20)]







Comments

  • lmkwin
    lmkwin ✭✭
    edited April 2021
    Viable? Sure, but being so rigid in the criteria may not pick up things that are being accumulated at lower prices over time. 1 down week would void the security from the scan. In my opinion, securities in accumulation (and distribution) tend to move inside a channel, and move out of the channel as that accumulation (distribution) phase is ending.
  • markd
    markd mod
    You could do it that way, but you would also need a something to show price is NOT advancing.

    My understanding of the term "accumulation" is insider (or informed) buying that does NOT move the price. AccDist tends to rise also when price itself is rising, so that state is not accumulation. Your scan needs to account for that.

    One way to test for both might be to compare price's moving average direction to AccDist Signal's direction. You would probably want AccDist Signal to be rising (with AccDist above it, probably), and price's MA still moving down. Get direction by comparing the current value to x days ago value of the same average.






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