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"I have some confusion about volume although I rely on it in my own
explorations. Take DELL for instance. DELL split 2 for 1 last December and
will split again next month. I'm not sure of the exact times it split. So
now you have four times the volume because of splits and not because of an
increase in purchasing interest. And now an indicator that looks at one year
of volume will be skewed."
Your data vendor, if worth its salt, adjust both price and volume for
splits. The number of outstanding shares doesn't determine the volume
traded.
BTW: I am thinking about copywriting the simple moving average, so don't use
it anymore.
Richard Estes
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