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Sun, 07-10-2005, 10:29 AM
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| Lesson #4 Accumulation/Distribution (A/D) Accumulation/Distribution (A/D): This is a momentum indicator that takes into account changes in volume and price. The idea is that a change in price coupled with an increase in volume will help confirm market momentum in the direction of a price change. The AD line is shown below the chart. If the indicator moves upward, buyers are driving the price; the security is being accumulated. If the indicator moves downward, sellers are driving the price; the security is being distributed. I like to look for a stock that is at bottom or just starting to turn up. This is not one of my main indicators, but is nice to check to find out if a stock has been "frontloaded" or already bought up before I enter. For this chart you can see that gryf back in june was just starting to turn up, the ideal entry was here at bottom. The AD line is fairly high, but again, I will not use this indicator as my sole indicator. The stock has been bought up, but that could mean also a leading indicator of a possible run to follow.  Last edited by pennyprophet2 : Sun, 07-10-2005 at 09:47 PM. |
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Sat, 04-01-2006, 08:05 PM
| #2 (permalink) |
| Moderator Join Date: Oct 2005 Location: South Jersey
Posts: 95
  | SA help or something concerning the A/D line why would it go down with so much positive volume and price? FLST chart will show an example of what I'm referring to. sorry for not posting chart , still having trouble with that one . Thanks frebet |
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Sat, 04-01-2006, 09:35 PM
| #3 (permalink) | |
| Realist,/Moderator!!!  Join Date: Dec 2005 Location: My feet!!!
Posts: 2,738
 | Wish bigcharts had better charts!! Quote:
__________________ All ambitions are lawful except those which climb upward on the miseries or credulities of mankind. Joseph Conrad, Use your own mind on what to buy and sell!! | |
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Sun, 04-02-2006, 09:27 AM
| #4 (permalink) | |
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Here is more on how to calculate this indicator http://stockcharts.com/education/Ind...mDistLine.html | |
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Sun, 04-02-2006, 10:17 AM
| #5 (permalink) |
| Moderator Join Date: Oct 2005 Location: South Jersey
Posts: 95
| SA, capt nemo thanks for the replys. WOW was I confused on that one. I"ve seen this a lot while scanning charts. Just never looked into it, other then reading the lessons. All it took was to change the time frame , 15 minute chart A/D line falls right into place. Time Frames another valuable lesson Thanks again |
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Thu, 04-06-2006, 09:46 PM
| #6 (permalink) | |
| Realist,/Moderator!!! Join Date: Dec 2005 Location: My feet!!!
Posts: 2,738
| Frebet!!! Quote:
__________________ All ambitions are lawful except those which climb upward on the miseries or credulities of mankind. Joseph Conrad, Use your own mind on what to buy and sell!! | |
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Sat, 04-08-2006, 04:38 PM
| #7 (permalink) |
| Member Join Date: Jan 2006
Posts: 88
| ADX well, it was *great* back in November: the D+ cross over D- just before November "hints" and hints again right after Nov starts, but trend line not confirming till the strong D+ cross. Once that "true" buy signal is followed by trend swinging to follow and run with D+, gotta go with it, eh? Notice divergence between D+ and D- as pps keeps rising. Later, even though pps still rising, you get signals as D+ and D- start to converge, then trend line loses strength. Time to look for the door, even though many probably held until actual downticks... |
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