accumulation distribution index


Accumulation/distribution index
 is a technical analysis indicator intended to relate price and volume in the stock market.

Contents

Formula

Accumulation Distribution

This ranges from -1 when the close is the low of the day, to +1 when it’s the high. For instance if the close is 3/4 the way up the range then CLV is +0.5. The accumulation/distribution index adds up volume multiplied by the CLV factor, i.e.

Accumulation Distribution

accdist = accdist_{prev} + volume times CLV - Accumulation Distribution

The starting point for the acc/dist total, i.e. the zero point, is arbitrary, only the shape of the resulting indicator is used, not the actual level of the total.

Accumulation Distribution

The name accumulation/distribution comes from the idea that during accumulation buyers are in control and the price will be bid up through the day, or will make a recovery if sold down, in either case more often finishing near the day’s high than the low. The opposite applies during distribution.

Accumulation Distribution

The accumulation/distribution index is similar to on balance volume, but acc/dist is based on the close within the day’s range, instead of the close-to-close up or down that the latter uses.

Accumulation Distribution

Chaikin oscillator

A Chaikin oscillator is formed by subtracting a 10-day exponential moving average from a 3-day exponential moving average of the accumulation/distribution index. Being an indicator of an indicator, it can give various sell or buy signals, depending on the context and other indicators.

Accumulation Distribution

Similar indicators

Other Price × Volume indicators:

Accumulation Distribution

  • Dimensional analysis – explains why volume and price are multiplied (not divided) in such indicators

Accumulation Distribution

This article uses material from the Wikipedia article accumulation/distribution index, which is released under the Creative Commons Attribution-Share-Alike License 3.0.

 

Related terms: Volume Accumulation Distribution, IBD Accumulation Distribution, Williams Accumulation Distribution Indicator, Stock Under Distribution, Volume Accumulation, Accumulation and Distribution Indicator, Accumulation Distribution Forex Indicator, Trendspotter Indicator

Powered by WordPress All Content Copyright © Day Trading Course|866.640.3737|learn how to trade Stocks Futures Day Trading Course|learn how to day trade|866.640.3737|live trading room Join our trading community Canada traders, US traders, Australia traders, Singapore
Theme created with SpiderWeb Press™.