Accumulation/Distribution
A volume-weighted indicator that measures the cumulative flow of money into or out of a stock, based on where the price closes within its daily range.
Explained Simply
The Accumulation/Distribution (A/D) line uses the close's location within the day's high-low range to determine whether volume represents accumulation (buying) or distribution (selling). If a stock closes near its high, most of the day's volume is classified as accumulation; if it closes near its low, it's classified as distribution. Unlike OBV which only considers close-to-close direction, the A/D line considers where within the range the close occurred, making it more nuanced. A rising A/D line indicates that buyers are dominant — the stock is being accumulated. A falling A/D line indicates distribution. Divergences between the A/D line and price are powerful signals — if price is rising but the A/D line is falling, smart money may be quietly selling into strength.
How Tradewink Uses Accumulation/Distribution
Tradewink computes the A/D line alongside OBV in its technical analysis pipeline to cross-validate volume signals. The AI uses A/D divergences as an additional filter for trade entries — a stock showing price strength but A/D weakness receives a reduced conviction score. The system also tracks multi-week A/D trends on watchlist stocks to identify institutional accumulation or distribution patterns that often precede significant price moves.
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See Accumulation/Distribution in action
Tradewink uses accumulation/distribution as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.