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technical_indicators:accumulation_distribution_line [2023/07/19 20:55] jayanthi [Introduction] |
technical_indicators:accumulation_distribution_line [2023/07/19 20:55] jayanthi [Calculation] |
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| 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. | 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 ===== | + | ===== How Do You Calculate the Accumulation Distribution Line? ===== |
| There are three steps to calculating the Accumulation Distribution Line (ADL). First, calculate the Money Flow Multiplier. Second, multiply this value by volume to find the Money Flow Volume. Third, create a running total of Money Flow Volume to form the Accumulation Distribution Line (ADL). | There are three steps to calculating the Accumulation Distribution Line (ADL). First, calculate the Money Flow Multiplier. Second, multiply this value by volume to find the Money Flow Volume. Third, create a running total of Money Flow Volume to form the Accumulation Distribution Line (ADL). | ||