Accumulation/distribution line

A running total of volume, weighted by where each bar closed in its range.

Formula

A/D = A/Dₚᵣₑᵥ + Volume × ((Close − Low) − (High − Close)) ÷ (High − Low)

How to read it

Direction matters, not level: rising A/D under a flat price suggests accumulation.

How to use it

Look for divergence: a rising line under a flat or falling price suggests buying the price has not shown yet.

Also called: accumulation, distribution, adl.

Related terms

The whole glossary · Investing tools