Accumulation / Distribution (A/D) Indicator Explained

Marc Chaikin's Accumulation/Distribution line refines OBV's all-or-nothing logic: instead of assigning the whole bar's volume by close direction, it scales volume by where the close landed in the range. Close near the high → most volume counts as accumulation; mid-range → little counts either way.

How It Works

• Money Flow Multiplier: ((close−low) − (high−close)) ÷ (high−low), from −1 to +1.
• Volume × multiplier accumulates into the running A/D line.
• A bar can close down yet accumulate, if it closed far off its lows.

How to Trade It

Read the line's trend against price: A/D rising through a flat price base is stealth accumulation; A/D refusing to confirm new price highs is distribution. Because it credits recoveries within bars, A/D often diverges earlier than OBV at turns.

Building It in Setup.Cash

Add Accumulation / Distribution (A/D) in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. The Chaikin A/D Oscillator trades the line's momentum. For the full category overview, see the volume indicators library guide.

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