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Technical Studies Reference


Accumulation / Distribution


Description

This study computes the Accumulation/Distribution Index, which was created by Bill Williams.

Let the High Price, Low Price, Closing Price, and Volume at chart bar \(t\) be denoted as \(H_t\), \(L_t\), \(C_t\), and \(V_t\), respectively. We compute the Range Volume \(RV_t\) at chart bar \(t\) as follows.

\(RV_t = \left(H_t - L_t\right)V_t\)

Let the Accumulation/Distribution Index be denoted by the random variable \(AD\). This random variable is initialized to a value of \(AD_0 = 0\). The value Accumulation/Distribution Index \(AD_t\) at chart bar \(t\) is computed as follows.

\(\displaystyle{AD_t=\left\{ \begin{matrix} AD_{t-1} & RV_t = 0 \\ \frac{\left(C_t - L_t\right) - \left(H_t - C_t\right)}{RV_t} & RV_t \neq 0 \end{matrix}\right .}\)

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*Last modified Saturday, 04th February, 2023.