Accumulation/distribution
The Accumulation/Distribution indicator is a tool used in finance to analyze price and volume changes. As a knowledgeable professor, I can tell you that this indicator is based on the idea that when volume accompanies a price move, the move is more significant. This tool helps us confirm changes in prices by comparing the associated volume. A rise in the Accumulation/Distribution indicates that the security is being accumulated, while a decline suggests distribution. Furthermore, divergences between the indicator and the security's price signal an imminent change. In such cases, the prices usually reverse to confirm the accumulation/distribution. To calculate this indicator, we add the difference between the daily high and low price if the day's change is positive, and subtract the range if it's negative.
Related terms
Understand the meaning and definition of Ascending Triangle (or Rising Triangle) in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Trading philosophies in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Channels in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of MACD in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of contango in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Elliot wave in the context of stock market, trading, and investments.
MORE


