Accumulation/Distribution (AD)

22May2008 Filed under: chart window, sigma forex Author: sigmalearning

Accumulation Distribution is a price and volume indicator.
-    When the Accumulation/Distribution moves up, it shows that the security is being accumulated (Buying), as most of the volume is associated with upward price movement.
-    When the indicator moves down, it shows that the security is being distributed (Selling), as most of the volume is associated with downward price movement.
-    Divergences between the Accumulation/Distribution indicator and the price of the security indicate the upcoming change of prices.