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--- technical_indicators:accumulation_distribution_line [2019/09/07 00:19]
betseyp [Bearish divergence in OBV and ADL]
+++ technical_indicators:accumulation_distribution_line [2023/07/19 20:55]
jayanthi [Introduction]
@@ Line 1: / Line 1: @@
 ====== Accumulation Distribution Line ======
-===== Introduction =====
+===== What Is the Accumulation Distribution Line? =====
-Developed by Marc Chaikin, the Accumulation Distribution Line is a volume-based indicator designed to measure the cumulative flow of money into and out of a security. Chaikin originally referred to the indicator as the Cumulative Money Flow Line. As with cumulative indicators, the Accumulation Distribution Line is a running total of each period's Money Flow Volume. First, a multiplier is calculated based on the relationship of the close to the high-low range. Second, the Money Flow Multiplier is multiplied by the period's volume to come up with a Money Flow Volume. A running total of the Money Flow Volume forms the Accumulation Distribution Line. Chartists can use this indicator to affirm a security's underlying trend or anticipate reversals when the indicator diverges from the security price.
+The Accumulation Distribution Line is a volume-based indicator developed by Marc Chaikin to measure the cumulative flow of money into and out of a security.
+Chaikin originally called the indicator the Cumulative Money Flow Line. As with cumulative indicators, the Accumulation Distribution Line is a running total of each period's Money Flow Volume.
+  * First, a multiplier is calculated based on the relationship of the close to the high-low range.
+  * Second, the Money Flow Multiplier is multiplied by the period's volume to come up with a Money Flow Volume.
+A running total of the Money Flow Volume forms the Accumulation Distribution Line. Chartists can use this indicator to affirm a security's underlying trend or anticipate reversals when the indicator diverges from the security price.
 ===== Calculation =====