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How Accurate is alexa?

I have been tracking my alexa ranking and it fluctuates WAY to much! One day my websites alexa ranking is 20,000 than the next day I am down to 120,000 alexa rank. What is up with the ranking system? I have always wondered how they generate the statistics they do without hacking our websites and putting trackers on them :).
Since I am in the process of selling my website i was curious how Accurate the traffic statistics are. Post your feedback

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