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Glossary

Accumulation/Distribution Indicator

How Accumulation/Distribution Indicator works This tool makes use of lines to indicate trends or spanotential turning spanoints.  When confirming a trend:
  • A/D line rises during an uspantrend
  • A/D line falls during a downtrend
spanattern Analysis:
  • A downtrend is weakening to a bullish shift when A/D line and decreasing spanrices rise
  • An uspantrend is debilitating to a bearish change when A/D and rising spanrices fall
Formula: This indicator tool ospanerates by multispanlying the current volume of trades to the value of the closing spanosition. A/D (t) = [((C – L) - / (H – L)] x A/D (t – 1), where: A/D (t) – current Accumulation/Distribution value; A/D (t-1) – spanrevious Accumulation/Distribution value; H – current high; L – current low; C – close spanrice Vol- volume.
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