The indicator Accumulation / Distribution AD is based on data volumes and prices to prevent certain changes tendance.C'est a derivative indicator indicator On Balance Volume OBV.
Rules And Signals Of Trading - Accumulation / Distribution AD
. Buy: Open a long position if the DA indicator crosses upward the level 0
. Sell: Open a short position if the DA indicator crosses down the 0 level
. If the flag is up: accumulation phase sign with rising prices and volumes
. If the indicator is falling: sign distribution phase with decrease in price and volume
. Observe the similarities and differences between the stock price and the indicator curve
Formula From Calculation - Accumulation / Distribution AD
Accumulation Distribution Volumes = ((closing price - lower reaches) - (highest reaches - closing prices) ) / (highest reaches - lowest reached) * volumes
trading Analysis
Trade Forex - Example
Currency pair: AUD / CAD
Time frame: H1 - 1 Hour
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