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Examples and interpretation of many commonly used indicators.

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Accumulation/Distribution

Description

The contents of the Accumulation/Distribution Line are explained in detail under the discussion of the Chaikin Oscillator. Briefly, the indicator is:

Where "I" is yesterday's Accumulation/Distribution value

Interpretation

The interpretation of the Accumulation/Distribution Line is similar to the interpretation of On Balance Volume wherein the indicator displays the flow of volume into or out of a security. The discussion on the Chaikin Oscillator explains the principles behind the Accumulation/Distribution Line.

Tips

Please don't confuse the volume Accumulation/Distribution indicator with Williams' price Accumulation/Distribution indicator.