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Richard
Yes but if I want to put on the same size trade I'm going to have to buy
twice as many shares and many people go into positions based on a
monetary size. If I want to buy $10000 worth of DELL I must buy twice as
many shares after the split.
Will you license the simple moving average?
John Manasco
Richard Estes wrote:
>
> "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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