The Accumulation/Distribution is a momentum indicator that associates changes in price and volume. The indicator is based on the premise that the more volume that accompanies a price move, the more significant the price move.

Interpretation

The Accumulation/Distribution is really a variation of the more popular On Balance Volume indicator. Both of these indicators attempt to confirm changes in prices by comparing the volume associated with prices.

When the Accumulation/Distribution moves up, it shows that the security is being accumulated, as most of the volume is associated with upward price movement. When the indicator moves down, it shows that the security is being distributed, as most of the volume is associated with downward price movement.

Divergences between the Accumulation/Distribution and the security's price imply a change is imminent. When a divergence does occur, prices usually change to confirm the Accumulation/Distribution. For example, if the indicator is moving up and the security's price is going down, prices will probably reverse.

Example

The following chart shows Battle Mountain Gold and its Accumulation/Distribution.

Battle Mountain's price diverged as it reached new highs in late July while the indicator was falling. Prices then corrected to confirm the indicator's trend.

Calculation

A portion of each day's volume is added or subtracted from a cumulative total. The nearer the closing price is to the high for the day, the more volume added to the cumulative total. The nearer the closing price is to the low for the day, the more volume subtracted from the cumulative total. If the close is exactly between the high and low prices, nothing is added to the cumulative total.

Accumulation / Distribution Stock Screener Action  AccDistr Bullish Trend in Last 3 Days          AccDistr Bullish Trend in Last 7 Days          AccDistr Bullish Trend in Last 13 Days          AccDistr Bullish Trend in Last 26 Days          AccDistr Bullish Trend in Last 50 Days          AccDistr Bullish Trend in Last 200 Days          AccDistr Bearish Trend in Last 3 Days          AccDistr Bearish Trend in Last 7 Days          AccDistr Bearish Trend in Last 13 Days          AccDistr Bearish Trend in Last 26 Days          AccDistr Bearish Trend in Last 50 Days          AccDistr Bearish Trend in Last 200 Days          AccDistr vs Price, Bullish Divergence in Last 3 Days          AccDistr vs Price, Bullish Divergence in Last 7 Days          AccDistr vs Price, Bullish Divergence in Last 13 Days          AccDistr vs Price, Bullish Divergence in Last 26 Days          AccDistr vs Price, Bullish Divergence in Last 50 Days          AccDistr vs Price, Bullish Divergence in Last 200 Days          AccDistr vs Price, Bearish Divergence in Last 3 Days          AccDistr vs Price, Bearish Divergence in Last 7 Days          AccDistr vs Price, Bearish Divergence in Last 13 Days          AccDistr vs Price, Bearish Divergence in Last 26 Days          AccDistr vs Price, Bearish Divergence in Last 50 Days          AccDistr vs Price, Bearish Divergence in Last 200 Days