Volume & order-flow
Accumulation/Distribution Line (A/D)
A cumulative volume line tracking buying vs selling pressure.
What is Accumulation/Distribution Line (A/D)?
The Accumulation/Distribution Line (A/D), from Marc Chaikin, is a cumulative indicator that uses the close's position within each bar's range, weighted by volume, to gauge whether money is flowing into (accumulation) or out of (distribution) an asset.
How it works
Each bar adds or subtracts a volume-weighted value depending on where price closed in its range. A rising A/D line indicates accumulation; a falling line distribution. Like OBV, the trend and divergence of the line matter more than its absolute value.
How traders use it
- ▸Trend confirmation: a rising A/D supports an uptrend.
- ▸Divergence: A/D vs price warns of reversals.
- ▸Breakout confirmation: A/D breaking out with price adds conviction.
- ▸Accumulation spotting: detect quiet buying.
Build Accumulation/Distribution Line (A/D) without code in Algovex
The A/D Line is a node in Algovex, use its trend or divergence to confirm moves, backtest on volume data, and export.
Key parameters
| Parameter | What it does |
|---|---|
| source | OHLC used for the money-flow multiplier. |
Frequently asked questions
What is the difference between the A/D Line and OBV?
Both are cumulative volume lines, but OBV adds or subtracts whole-bar volume by close direction, while the A/D Line weights volume by where price closed within the bar's range. Algovex provides both.