The volume acts as a weighting coefficient at the change of price — the higher the coefficient the volume is the greater the contribution of the price change for this period of time will be in the value of the indicator.

In fact, this indicator is a variant of the more commonly used indicator On Balance Volume. They are both used to confirm price changes by means of measuring the respective volume of sales.

When the indicator drops, it means distribution selling of the security, as most of sales take place during the downward price movement. As a rule, in case of such divergences, the price tendency moves in the direction in which the indicator moves. Thus, if the indicator is growing, and the price of the security is dropping, a turnaround of price should be expected.

Accumulation-Distribution Indicator Explained | gepahotalefi.web.fc2.com - Trading School, Brokers and Offers

A certain share of the daily volume is added to or subtracted from the current accumulated value of the indicator. The nearer the closing price to the maximum price of the day is, the higher the added share will be.

Trading via the Accumulation/Distribution Indicator - Forex Strategy

The nearer the closing price to the minimum price of the day is the greater the subtracted share will be. If the closing price is exactly in between the maximum and minimum of the day, the indicator value remains unchanged.

Accumulation/Distribution - Volume Indicators - Technical Indicators - Price Charts, Technical and Fundamental Analysis - MetaTrader 5 Help

Trading Platform MetaTrader 5 Download Forex and Stock Markets Trading Charts Technical Analysis Fundamental Analysis Alerts Virtual Hosting VPS Web Trading Comparison with MetaTrader 4 MetaTrader 5 Help Release Notes News Automated Trading MQL5 IDE Robots and Indicators MQL5 Programming Language MQL5 Wizard MetaEditor MetaEditor Help Strategy Tester MQL5.

Calculation A certain share of the daily volume is added to or subtracted from the current accumulated value of the indicator.

Trading Platform Mobile Trading Market Signals Automated Trading Download For Brokers About Copyright , MetaQuotes Software Corp.