Rating on A/D when smart money leaves or comes

October 29th, 2016, 09:49 AM

Hello Forum,

Just in the last days we heard a lot of "smart money is leaving the stocks". So I researched this topic because I would like to have an empirical view on that. This article came up where they classify smart money in stocks from A to E.
I'm wondering how to calculate this A/D rating, to classify Stocks. Does somebody know a paper/article were it's
described?

Here is a rnd article about this topic
Accumulation/Distribution (Acc/DisTM) Rating | Financial Terms - IBD Key Terms - IBD University - Investors.com

All the best!

<Article>
Accumulation/Distribution (Acc/DisTM) Rating

Exclusive rating in Investor's Business Daily. One of the IBD SmartSelect� Corporate Ratings, it tracks the relative degree of institutional buying (accumulation) and selling (distribution) in a particular stock over the last 13 weeks. Updated daily, stocks are rated on an A+ to E scale.
A = Heavy buying
B = Moderate buying
C = Equal amount of buying and selling
D = Moderate selling
E = Heavy selling
The rating is enhanced by "+" and "-" signs to show additional detail on institutional activity; a "B+" indicates greater accumulation than a "B" rating, whereas a "B-" indicates less accumulation than a "B" rating, and so on.

</Article>

October 29th, 2016, 10:31 AM

"This thoroughly tested, complex, and proprietary formula is highly accurate and is not
based on simple up/down volume calculations. Stocks are rated on an A to E scale ..."

W.J. O'Neil, How to Make Money in Stocks, 4th ed., p. 347

Rating on A/D when smart money leaves or comes

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Rating on A/D when smart money leaves or comes