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* fix: images self closing tags
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Co-authored-by: jose-donato <zmcdonato@gmail.com>
Co-authored-by: jose-donato <43375532+jose-donato@users.noreply.github.com>
Co-authored-by: andrewkenreich <andrew.kenreich@gmail.com>
The Accumulation/Distribution Line page provides information about how this technical analysis tool operates, based on the close location value, to predict trends in stock price. It also covers how to interpret divergence in the indicator, usage of the tool, and parameters for customization.
Accumulation/Distribution Line
On Balance Volume
close location value
stock market indicator
price movement
technical analysis
price trends
import HeadTitle from '@site/src/components/General/HeadTitle.tsx';
The Accumulation/Distribution Line is similar to the On Balance Volume (OBV), which sums the volume times +1/-1 based on whether the close is higher than the previous close. The Accumulation/Distribution indicator, however multiplies the volume by the close location value (CLV). The CLV is based on the movement of the issue within a single bar and can be +1, -1 or zero. The Accumulation/Distribution Line is interpreted by looking for a divergence in the direction of the indicator relative to price. If the Accumulation/Distribution Line is trending upward it indicates that the price may follow. Also, if the Accumulation/Distribution Line becomes flat while the price is still rising (or falling) then it signals an impending flattening of the price.