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OpenBB/website/content/terminal/reference/stocks/ta/ad.md
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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>
2023-10-30 21:01:29 +00:00

1.6 KiB
Vendored

title, description, keywords
title description keywords
ad An in-depth explanation of Accumulation/Distribution Line (AD), its interpretation, and usage. The page also provides a Python script for the indicator and describes its parameters.
Accumulation/Distribution Line (AD)
AD Indicator
Close Location Value
CLV
Stock Market Indicator
Python Script
b_use_open
On Balance Volume (OBV)
Volume Times

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.

Usage

ad [--open]

Parameters

Name Description Default Optional Choices
b_use_open uses open value of stock False True None

ad