Accumulation Distribution confirms price trends or notifies of weak movements that could result in a price reversal using volume.
* Accumulation: Volume is considered to be accumulated when the day's close is higher than the previous day's closing price. Thus the term "accumulation day"
* Distribution: Volume is distributed when the day's close is lower than the previous day's closing price. Many traders use the term "distribution day"
The basic A/D formula is
A/D = ((close - low) - (high - close)) / (high - low) * volume
Btw, some analysis methods use the accumulated version of the indicator:
A/D = (((close - low) - (high - close)) / (high - low) * volume) + A/Dprevious
This implementation supports both modes. The mode can be chosen via the indicator parameters.
Download:
See also the version of the indicator with Tradestation's formula
The indicator was revised and updated