Technically Speaking Archives

Chart Analysis

Technical Indicators & Overlays

Computerized Investing > First Quarter 2011

The Accumulation/Distribution Line

PRINT | | | | COMMENTS (5) | A A   Reset

by CI Staff

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.

...To continue reading this article you must be a Computerized Investing Subscriber.

Gain exclusive access to this article and all of the benefits and investment education a Computerized Investing subscription offers.

SUBSCRIBE TODAY for just $24.
Log in
Already a CI subscriber? Login to read the rest of this article.

Subscribe
A subscription to Computerized Investing includes a monthly email and access to the CI Website, all of which aim to benefit your investing skills with respect to computers and the Internet.

  


Discussion

George from IL posted over 3 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 2 years ago:

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


Joseph from NM posted over 2 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 2 years ago:

The charts we used in the article are from StockCharts.com.


William from TX posted over 2 years ago:

I found the following link helpful in explaining and calculating the A/D line;
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:accumulation_distribution_line


You need to log in as a registered AAII user before commenting.
Create an account

Log In