Indo Global Exchanges Pte Ltd (IGEX)

[Peter Penny]

It’s accumulating, not distributing.

The accumulation/distribution line gauges supply and demand by looking at where the price closed within the period's range, and then multiplying that by volume.

The A/D indicator is cumulative, meaning one period's value is added or subtracted from the last.

A rising A/D line helps confirm a rising price trend.

A falling A/D line helps confirm a price downtrend.

If the price is rising but A/D is falling, it signals underlying weakness and a potential decline in price.

If the price of an asset is falling but A/D is rising, it signals underlying strength and the price may start to rise.