Accumulation/Distribution

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Accumulation/Distribution

Variable List Abbreviation: Accum/Dist

 

Variable Mode(s): Stock, Futures1, and Futures2

[ Note: appears in indicator list only after high and low selected ]

 

Parameter(s): Accum/Dist time periods

 

Description:

Sum of the distance between the close and low during time periods of increasing closing price and the distance between the close and high during time periods of decreasing closing price.  Because the sum effectively measures the strength of price trending, the trend may be useful for predicting upcoming price trends and price trend reversals.

 

Calculation:

Sum over n time periods of

if ( close > previous close )

( close - low )

if ( close < previous close )

( high - close )