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Accumulation / Distribution

Indicators · Volume

Accumulation / Distribution node on the canvas

Cumulative money-flow volume — the A/D line.

The Accumulation/Distribution line (A/D) is a cumulative running total of money-flow volume — a close cousin of OBV, but more nuanced. Where OBV adds the whole bar's volume based only on whether the close was up or down, the A/D line weights each bar's volume by where the close landed within its range. A bar that closes near its high adds more than one that closes mid-range, even if both closed up. The result is a smoother, more sensitive measure of whether an instrument is being quietly accumulated or distributed.

How it works

Each bar the block computes the close-location multiplier — ((close − low) − (high − close)) / (high − low), +1 at the high, −1 at the low — multiplies by volume, and adds the result to a running cumulative total (the same money-flow volume that Chaikin Money Flow averages, but accumulated rather than ratio'd). The output is a single ever-rising-or-falling line in a sub-pane. As with OBV, the absolute value is arbitrary; direction and divergence are everything.

When to use it

Use the A/D line to confirm trends and, above all, to spot divergence. A rising A/D line confirms buyers are in control even on quiet days; a falling A/D while price holds up warns of distribution beneath the surface. Because it's range-weighted it reacts to subtle shifts OBV would miss — but that sensitivity also means a single odd bar (a big gap, a close pinned mid-range) can nudge it. It's a confirmation and early-warning tool, not a trigger, and uses tick volume on forex.

Example

Accumulation / Distribution on the EURUSD H1 chart

Accumulation / Distribution on EURUSD · H1

Confirm accumulation: wire bars into Accumulation/Distribution and require the line rising alongside your long trigger through an And gate into a Buy Signal. Use the Tester review to check whether failed trades showed A/D divergence beforehand.

Tips & gotchas

  • Range-weighted, unlike OBV. It captures where in the bar price closed, not just up/down — smoother and more sensitive.
  • Direction and divergence only — the absolute level is meaningless.
  • Gap-sensitive. A bar that gaps and closes mid-range can distort it, since it ignores gaps between bars.
  • No period to tune — it's a pure cumulative line; the Chaikin Oscillator adds smoothing on top.

Inputs

Socket Type What to wire in
Bars bars Price bars

Outputs

Output Type Plots as Description
A/D series Line · sub-pane A/D cumulative value

Parameters

Parameter Type Default What it does
Line color colour #26c6da

Reference auto-generated from the block catalog · category Indicators.