Using the Demand Indicator Score in the Breakout Tracker

Question:

I am trying use the DI indicator pretty much like the signal bar of the cell phone. But, I also want to know the history.
1.  Is institution start to accumlate?
2.  Is institution accumlate more and more?
3.  Is institution starting to unload?
4.  Is institution unload more and more?

That is, Use the DI indicators to indicate current institution accumlation status – from 1 bar to 3 bar?  Or de-accumalation, it was 3 bars before and is moving away from 3 to 2 to 1 (over a 30 to 40 days period)?  Something like that.

My Response:

The Demand Indicator measure the price and volume movement of a
stock over 15 and 30 days.  Essentially, the greater the score, the more
accumulation, the lower the score, the greater the distribution (or
institutional selling). 

I understand what you’re saying.  You’re wanting to see the acceleration
and deceleration of accumulation and distribution, but I think that DI indicator
as is will be plenty useful (there is only so much space in the Breakout
Tracker :). Just know that I’m always looking at ways to improve the
service and will consider new ways of displaying the data.

The DI indicator gives you a great "picture" of the health of the stock, but
when making a purchase decision you’ll need to look closer using the daily
chart for action over the last couple of days and finally a real time chart
(5 and/or 10 minute) to see price and volume movements at the time of
purchase.  Essentially, you are zooming in closer and closer.  The Breakout
Tracker is designed to find the stocks to zoom in on closer with very little
of your time.  The Demand Indicator as is provides a great initial filtering
tool for uncovering the best opportunities – a little more research is always
necessary.

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