Accumulation Distribution Indicator

Accumulation Distribution Indicator

#Forex indicators , #Forex strategies , #Technical analysis

Firstly, indicators of technical analysis, including the Accumulation Distribution indicator, which will be discussed now, are the basis of technical analysis. There are so many of them that in order to determine which ones to apply in a particular situation, you need to spend a lot of time directly on the analysis. Very often you will notice that some indicators work better on certain trading instruments and timeframes.

At the same time, most indicators are late in their signals. Traders often say this is bad. But! What difference do they delay or not, if their signals are repeated, that is, they are systemic? They are great for analyzing the market situation, which, in turn, allows you to profit when trading.

So, the Accumulation Distribution indicator.

The indicator considers the chart as the ratio of volume to price over a certain period of time. Volume is a kind of coefficient of change. It sounds complicated, but in fact, everything is simple, an increase in volumes makes a big contribution to changing the quotes of a trading instrument. The indicator line clearly shows when volumes are growing and when they are falling.

The growth of the Accumulation Distribution Indicator, A / D “speaks” of the accumulation of BUY positions (that is, of purchases) in a trading instrument, and the decline – of sales.

Adding an indicator to MT

Accumulation / Distribution (Accumulation Distribution Indicator, A / D) is included in the standard equipment of MT4 and MT5 trading platforms. To add it to the chart of the trading instrument, open the “Insert / Indicators /” menu

Option to add Accumulation / Distribution Indicator (A / D) No. 2.

By default, the Navigator window is open on the desktop. Select the Accumulation / Distribution, A / D indicator in it, as shown in the figure, and drag it onto the chart of the trading instrument.

Calculation of the Accumulation / Distribution (A / D) Indicator

Let’s talk about the Accumulation / Distribution (A / D) formula. To calculate the next indicator value (the next point on the chart), the current AD value is taken and the trading volume of our working timeframe is added (subtracted). At the same time, the amount of the term (subtracted) depends on how close the current value of the candle is to the maximum for the indicator period. The closer the candlestick to the extreme, the greater the indicator will show. The indicator value will remain unchanged if the current candlestick closes exactly in the middle between the minimum and maximum for the indicator period.

Formula Indicator Accumulation / Distribution (Accumulation / Distribution, A / D):

A / D (i) = ((CLOSE (i) – LOW (i)) – (HIGH (i) – CLOSE (i)) * VOLUME (i) / (HIGH (i) – LOW (i)) + A / D (i-1),


  • A / D (i) – A / D reading for the candle;
  • CLOSE (i) – price at which the candle closed;
  • LOW (i) – min;
  • HIGH (i) – max;
  • VOLUME (i) – volume;
  • A / D (i-1) – mark for the previous candle.

Trading system

Discrepancies in the behavior of the Accumulation / Distribution (A / D) Indicator and the trading instrument chart hint at upcoming changes. That is, when the indicator rises and the chart falls, or vice versa, a market reversal is planned. The Accumulation / Distribution, A / D indicator is great for detecting divergence.

Also, if you are used to trading in graphical analysis, then the indicator chart can be analyzed in the same ways.

For example, the passage of the indicator value below the levels or lines of support or resistance indicates that the price will soon go there. Standard graphic shapes – “Head and shoulders”, “Double top or Bottom” work the same way. Etc.

Simple trading tactics

Add the MA indicator to the chart for trend recognition. We will open deals for sale when the price of the chart is below the MA, for the opposite.

Terms of opening a deal for sale:

  • Prices below MA.
  • The graph of the Accumulation / Distribution (A / D) indicator showed growth over time.
  • Prices approached the MA border below.
  • The indicator chart has turned down.

We open a deal for sale. Stop Loss set a few points above the value of MA. We wait.

When the price closes above the MA value, we close the deal on the next candle.

For purchase transactions, the reverse is true.

A few simple rules in conclusion

Remember, there are no indicators on Forex that are not mistaken. The Accumulation / Distribution (A / D) indicator, like any others, requires confirmation of its signals. When building your own trading system, use several indicators.

Follow Mani Management. Never in one transaction risk more than 2 percent of your capital. This approach will protect you from ruin and allow you to consistently make money on Forex using the Accumulation / Distribution, A / D indicator.

Follow your trading strategy clearly. If, according to the strategy of the Accumulation / Distribution, A / D Indicator, you need to open a deal, open it, if you fix the result, fix it, and it does not matter if you are in the black. Only following the rules of the Accumulation / Distribution, A / D indicator “from and to” will allow you to earn money.

Accumulation / Distribution, A / D indicator for MT4 can be downloaded here

The Accumulation / Distribution, A / D indicator for MT5 can be downloaded here

All tags

Total 87 materials
  • Forex Indicators (56)
  • # Forex Strategies (36)
  • # Earnings on Forex (35)
  • # Practical Forex (23)
  • # Forex for beginners (19)
  • # Forex for dummies (16)
  • # Technical analysis (11)
  • #Trading (6)
  • # History of world currencies (5)
  • # Forex Brokers (2)
  • # Fundamental analysis (2)
  • #CFD (1)

To conclude a framework agreement, the client is obliged to confirm that he is familiar with the following risks associated with the conclusion, execution and termination of obligations under the framework and individual agreements:

1. The risk of loss to an individual as a result of changes in foreign exchange rates (currency risk).

2. The risk of loss to an individual as a result of non-performance, untimely performance or incomplete performance by the Forex dealer and (or) the bank in which the Forex dealer account is opened, financial obligations to such an individual in accordance with the terms of the Agreement and Separate Agreements (credit risk )

3. The risk of loss to an individual as a result of a violation of applicable law and (or) internal documents of a Forex dealer by employees of a Forex dealer, a malfunction (failure) of software and hardware of a Forex dealer and (or) individual, a mismatch of software and hardware of a forex dealer to the nature and volume of transactions it conducts, transactions by a third party on behalf of an individual as a result of receipt by such a person randomly or as a result of his deliberate actions of unauthorized access to the possibility of making such transactions on behalf of an individual, carrying out operations by an individual that are not in accordance with his intentions, for reasons related to insufficient experience of working with this individual with software and hardware of a forex dealer and (or) making it random actions, as well as the result of external events (operational risk).

Contracts or financial instruments proposed for conclusion are highly risky and may lead to the loss of the deposited funds in full. Before making transactions, you should familiarize yourself with the risks associated with them.

    • About Teletrade Group
    • Risk Disclosure
    • company’s news
    • Information disclosure
    • For windows
    • FAQ
    • Open Forex Account
    • Distance learning
    • Forex Video Tutorials
    • Forex training for free
    • AUD CAD
    • AUD JPY
    • AUD USD
    • CAD JPY
    • EUR AUD
    • EUR CHF
    • EUR JPY
    • EUR USD
    • GBP CAD
    • GBP JPY
    • GBP USD
    • NZD CAD
    • NZD USD
    • USD CHF
    • AUD CHF
    • AUD NZD
    • CAD CHF
    • CHF JPY
    • EUR CAD
    • EUR GBP
    • EUR NZD
    • GBP AUD
    • GBP CHF
    • GBP NZD
    • NZD CHF
    • NZD JPY
    • USD CAD
    • USD JPY
    • SGD JPY
    • How to make money on Forex
    • What is a forex exchange?
    • Trading is a 21st Century Profession
    • How can a beginner make money on Forex?
    • Pivot Points
    • RSI indicator
    • Moving Average indicator
    • Indicator Know Surely
    • TDI indicator
    • SD indicator
    • OsMA indicator
    • RSI Strategy
    • ROC indicator
    • TRIX indicator
    • Ichimoku indicator
    • Stochastic
    • How the ADX indicator works
    • CCI indicator
    • Stop loss and Take Profit

The best geek prank collection can be found at Play with the Windows simulator, the fake upgrade screens, the fake disk formatter and other pranks.

Leave a Reply

Your email address will not be published. Required fields are marked *