A/D Line - Accumulation/Distribution

What is A/D Line?

The Accumulation/Distribution Line uses closing location value (where close is relative to high-low range) multiplied by volume to show money flow direction.

• Close near high = accumulation (buying)
• Close near low = distribution (selling)
• Cumulative running total like OBV

Trading

• A/D rising with price: Confirmed uptrend
• A/D falling with price: Confirmed downtrend
• Divergence: Price vs A/D divergence signals reversal