Accumulation / Distribution
Liens connexes:
Acceleration / Deceleration Oscillator Accumulation / Distribution |
Accumulation / Distribution
The more expanded the volume of trade is the more noticeable the price changes will be. Accumulation/Distribution Technical Indicator is determined by the changes in price and volume. This indicator is a less commonly used variant of the indicator On Balance Volume. When the Accumulation/Distribution indicator grows, it means accumulation of a currency, as the overwhelming share of the sales volume is related to an upward price movement. When the indicator drops, it means distribution (or selling) of the currency, as most of sales take place during the downward price trend.Divergences between the A/D indicator and the currency price indicate the upcoming change of prices. As a rule, in this case, the price tendency moves in the direction in which the indicator moves. For instance, if the indicator is growing, and the price of the security is falling, a soon turnaround of price is expected.
Calculation:
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 day price is, the greater added share will be. The nearer the closing price to the minimum day price is, the higher the subtracted share will be. If the closing price is precisely in between the maximum and minimum of the day, the indicator value remains unchanged.A / D(i) =((CLOSE(i) - LOW(i)) - (HIGH(i) - CLOSE(i)) * VOLUME(i) / (HIGH(i) - LOW(i)) + A / D(i-1)
Where:
A / D(i) - value of the Accumulation / Distribution Indicator for the current bar;
CLOSE(i) - closing price of the bar;
LOW(i) - minimum price of the bar;
HIGH(i) - maximum price of the bar;
A / D(i-1) - value of the Accumulation / Distribution Indicator for the previous bar.
Similar information about indicators you can find in information system of trade platform MetaTrader 4 (Help-> Help Topics [F1] -> Ananlitics -> Technical Indicators).
