An indicator based on the trading volume index that reflects the accumulated inflows and outflows of funds by comparing the maximum and minimum closing prices.
Use of Acumulation Distribution Indicator
This indicator line can be used to confirm a trend or identify signs of weakness.
Confirm the trend:
1- Rising indicators confirm an uptrend;
2- Falling indicators confirm a downward trend.
Disagreements occurred:
1-The price reaches a new high without the indicator confirming it, which is a sign of weakness in the uptrend and may reverse to the downside;
2- When the price reaches a new low without the indicator confirming it, this is a sign that the downtrend is weakening and will likely reverse upward.
Acumulation Distribution Indicator