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Accumulation Distribution Line Indicator

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Summary: The Accumulation Distribution Line was created by Marc Chaikin to determine the flow of money into or out of a security.
Accumulation Distribution Line the Charts
According to investopedia, the Accumulation Distribution Line is a cumulative indicator that uses volume and price to assess whether a stock is being accumulated or distributed. The A/D measure seeks to identify divergences between the stock price and the volume flow.
Key concepts:
  • Gauges supply and demand of an asset or security by looking at where the price closed within the period's range and then multiplying that by volume.
  • Is cumulative, meaning one period's value is added or subtracted from the last.
  • A rising A/D line helps confirm a rising price trend, while a falling A/D line helps confirm a price downtrend.
This indicator also includes a smoothed signal line to help identify potential trend changes. The value and signal are then combined to show the overall trend when viewing on the charts.
The parameters of the Accumulation Distribution Line can be changed by locating and opening the Javascript Code under Data Building Procedure -> Procedure Loop under "ADL" Product Definition.
Accumulation Distribution Line Products & Properties
Product Setting Product Variable Properties
ADL adl value, signal
Example:
A simple strategy can be built by entering a trade when the value crosses the signal line upwards:
 chart.at15min.adl.value > chart.at15min.adl.signal
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