How to get rid of gaps in Price ROC

[Pascal]

But how do you computerize the calculation of the Active Float value? Meaning the number of shares. Don't you have to put in a few values and then compare of the resulting active float curve to the actual price curve within the same time frame to see if reversals mostly match in both graphs? How do you automate this process?

Exactly! This is not an easy process, but it can be computerized.

I have two maintenance programs running for the AB system:

1. One a year, I reset the active float.

Usually, I take as active float an amount of shares that has been exchanged between 60 days and 90 days.
- If the float turnover is lower than 60 days (for very actively traded stocks) then I need to take the total float as the active float
- If the float turnover is much higher than 90 days (sluggish/defensive companies), I use max 90 days, but still check that the AB pattern follows the price pattern.
- For other stocks, then I need a trial and error that tests different floats. (It is a pattern recognition software)

2. One per week, I check that a new boundary is not setting (new trend starting)


Pascal