I am looking for a way to take an accumulation/distribution indicator and normalize it so I can compare a bunch of stocks with stock prices that have no relationship with each other. EDIT: This would be straightforward on interday data, but the problem is with intraday data: you can't get an intraday normalized volume measure, because the volume is always skewed where there is huge volume in the first and last half out, and relatively meaningless volume otherwise.
What I am currently doing is dividing the different AD measures by 1,000 and then capping at +/-80 anything above/below that:
closeVsLow = (close - low) ; closeVsHigh = (high - close) ; closeVsOpen = (close - open) ; myrange = (high - low) ; myVolume = volume; AD= ((closeVsLow - closeVsHigh) / myrange) * volume; pvalue = acdOne / 1000; if (pvalue > 80) then pValue = 80; if (pvalue < -80) then pValue = -80;
Is there a better way of normalizing this?