# Accumulation/Distribution Accumulation/Distribution maintains a cumulative line built from each bar's close location value, the position of the close within the high-low range, multiplied by volume, so bars closing near their highs add volume-weighted pressure and bars closing near their lows subtract it. The line is cumulative with no length parameter. This is the standard raw implementation of Marc Chaikin's Accumulation/Distribution Line. - Indicator in the LuxAlgo Library, by LuxAlgo, published Apr 13, 2020. - Access: free. - Concepts: [Accumulation/Distribution Line](https://www.luxalgo.com/library/concept/accumulation-distribution-line/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=ja76qjqtwbpx85zu7who9cvp - Page: https://www.luxalgo.com/library/indicator/accumulation-distribution/ **Accumulation/Distribution** keeps a running tally of volume-weighted pressure, crediting each bar's volume in proportion to where the close lands within the bar's high-low range. A close near the high pushes the line up, a close near the low pulls it down, and a midrange close adds little either way, so the total tracks whether volume keeps arriving on strong closes or weak ones. This is the standard raw implementation of Marc Chaikin's Accumulation/Distribution Line: cumulative from the start of the loaded history, with no length parameter and no smoothing. ## How to Trade the Accumulation/Distribution? - **A/D rising with price**: volume is flowing in behind the advance, giving the trend confirmation. - **A/D falling with price**: weak closes on volume accompany the decline, confirming the downtrend. - **Price at a new high, A/D at a lower high**: bearish divergence. The push is happening on closes that sit lower in their ranges. - **Price at a new low, A/D at a higher low**: bullish divergence. Selling pressure is drying up even as price probes lower. - **Slope changes during a trend**: a flattening A/D line is the earliest and least reliable warning. Wait for price structure to confirm. Only the line's direction and how its swings compare with price swings carry information. The absolute number merely reflects where the loaded history begins. ## Accumulation/Distribution Settings The classic A/D Line takes no parameters: a cumulative sum with no lookback window, nothing to tune, no way to misconfigure. The build's only input is the **A/D Line** color used for the plot; everything else is defined by the formula itself. ## Frequently Asked Questions ### How is Accumulation/Distribution different from On-Balance Volume? OBV pushes each bar's entire volume up or down based purely on the close-to-close direction. A/D instead grades every bar by where its close finishes inside its own range, so a down day that closes near its high can still register accumulation: more granular within each bar, where OBV is more sensitive to what happens between bars. ### Why does the A/D value differ between charts? The line is cumulative, so its level depends entirely on the first bar of loaded data: two feeds with different history depth produce different running totals for the same symbol, and both are correct. Compare slopes, turning points, and divergences, never absolute values. ### What is the indicator's main limitation? The multiplier is computed inside each bar's own range and never references the prior close, so gaps never enter the calculation: a session that opens sharply lower yet closes near its high still registers positive money flow. It also depends on trustworthy volume, so it is most reliable on liquid instruments. ## Related indicators - [Oscillator Matrix](https://www.luxalgo.com/library/indicator/luxalgo-oscillator-matrix/) (Money Flow Index): markdown at https://www.luxalgo.com/library/indicator/luxalgo-oscillator-matrix.md - [LuxAlgo - Screener (OSC)](https://www.luxalgo.com/library/indicator/luxalgo-screener-osc/) (Money Flow Index): markdown at https://www.luxalgo.com/library/indicator/luxalgo-screener-osc.md - [Delta ZigZag](https://www.luxalgo.com/library/indicator/delta-zigzag/) (Weis Wave Volume): markdown at https://www.luxalgo.com/library/indicator/delta-zigzag.md - [Price Zone Oscillator](https://www.luxalgo.com/library/indicator/price-zone-oscillator/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/price-zone-oscillator.md - [OBV Divergence](https://www.luxalgo.com/library/indicator/obv-divergence/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/obv-divergence.md - [Smart Money Index](https://www.luxalgo.com/library/indicator/smart-money-index/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/smart-money-index.md - [Trade Volume Index](https://www.luxalgo.com/library/indicator/trade-volume-index/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/trade-volume-index.md - [Volume Flow Indicator](https://www.luxalgo.com/library/indicator/volume-flow-indicator/) (Volume & Order Flow): markdown at https://www.luxalgo.com/library/indicator/volume-flow-indicator.md --- Source: https://www.luxalgo.com/library/indicator/accumulation-distribution/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/