Accumulation/Distribution Line
Original schematic showing the guide's principal visual relationships.
Formula and components
A cumulative volume line weighted by where each close occurs within its high-low range.
A/D = prior A/D + [((C−L) − (H−C))/(H−L)] × Volume.
How it works
The indicator transforms price, range, or volume observations over a selected lookback. Shorter settings react faster but create more noise; longer settings respond more slowly and emphasize the underlying regime. Always compare the reading with price structure and timeframe.
How to read it
A rising line suggests closes cluster near period highs; divergence from price can reveal weakening participation.
Confirmation checklist
Confirm that participation supports the price move and compare like-for-like sessions. One unusual print or event-driven spike should not define the entire signal.
Limitations and false signals
The calculation ignores price gaps and can disagree with price when a gap is followed by a close within the opposite side of the range.