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Technical Indicators & Overlays

Computerized Investing > First Quarter 2011

The Accumulation/Distribution Line

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Technical analysis is all about studying the activity of price and volume in a given security in the hopes of predicting future price movements. The interaction between the supply and demand of a security is a driving force behind price activity. There are several indicators that examine the flow of money into and out of a security in order to determine its likely price direction. One of them is the accumulation/distribution line, which considers the trading range of a security for a given period and the trading volume. Developed by Marc Chaikin, the accumulation/distribution line is used to assess the cumulative flow of money into and out of a security.

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George from IL posted over 6 years ago:

All fine and good...except what is the period... if one day then the chart is dominated by volume...if too long the volume becomes meaningless.

William from CT posted over 6 years ago:

can you provide a couple of sources where accumulation/distribution lines are available for individual stocks? Thanks.

Joseph from NM posted over 6 years ago:

So many questions, yet no answers. I need to see if the CLV line is published any where for use? he A/D line I am familiar with is found on TDAmeritrade and it only shows the balance of stocks bought/sold over time. It shows an A/D line for each of DOW, NASD, and NYSE so I can see a trend for the overall stock market, but the CLV line has usefulness when evaluating an individual stock.

Wayne from IL posted over 6 years ago:

The charts we used in the article are from

William from TX posted over 6 years ago:

I found the following link helpful in explaining and calculating the A/D line;

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