Accumulation/Distribution Line

A cumulative volume-flow line that rises when the close finishes near the high of the range and falls when it finishes near the low. Used to confirm price trends or spot divergence.

Category: Volume · Complexity: ★★☆☆☆ (2/5)

Tags: volume, live-overlay, volume

Live chart overlay: AD

Accumulation/Distribution Line chart illustration

Formula

MFM = ((C−L)−(H−C))/(H−L); AD = Σ(MFM·V)

How to read

Closes near highs add volume; near lows subtract. Divergence with price flags flow disagreement.

Limitations

Uses H-L location, not true bid/ask aggression. Gaps can distort.

Typical settings

Cumulative

Accumulation/Distribution Line is part of the ClearPath Encyclopedia of Indicators — 190 models explained with standard SVG illustrations, so you can study an indicator before you put it on a live chart.

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