AD (Accumulation/Distribution)

Indicator Description

AD (Accumulation/Distribution) is a volume-based technical indicator that measures money inflow and outflow by analyzing the relationship between price and volume.

Function Information

  • Function Name: AD
  • Input Parameters: High, Low, Close, Volume
  • Parameter Settings: None
  • Output: AD value

Calculation Principle

AD is calculated using the following formula:

Money Flow Multiplier = ((Close - Low) - (High - Close)) / (High - Low)
Money Flow Volume = Money Flow Multiplier * Volume
AD = Previous AD + Money Flow Volume

Where:

  • High is the high price
  • Low is the low price
  • Close is the closing price
  • Volume is the volume

Usage Scenarios

  1. Money flow analysis
  2. Trend confirmation
  3. Divergence analysis
  4. Support and resistance level judgment

Usage Recommendations

  1. Rising AD indicates increasing money inflow
  2. Falling AD indicates increasing money outflow
  3. Watch for divergence between price and AD
  4. Use in conjunction with other indicators
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