Accumulation/Distribution Forex trading indicator.

Accumulation/Distribution Forex trading indicator it's variant of On Balance Volume trading indicator, but in difference of in is characterize how little less effective. The main discriminating particularity of Accumulation/Distribution it's volume weighting by position, where close price is situated comparatively high and low price. Accumulation/Distribution was developed by Mark Chaikin (177 . 77th Street, New York, NY 10021) and be base of Chaikin Oscillator, which measures weighted by price volume pulse.

You can use Accumulation/Distribution Forex trading indicator for any chart time frame, using corresponding to this chart volume.

Accumulation/Distribution Forex trading indicator shows close price position into its candle, displayed like share. Share is multiplied by volume, so we get a value of pure accumulation (buy pressure with plus sign) or pure distribution (sell pressure with minus sign). This values are accumulated in cumulative sum and shows like line into chart. The upwards movement says about bull trend, downwards - bear trend.

Accumulation/Distribution calculated by this formula:
AD = cumulative sum ({[( - L) - ( - )] : ( - L)} * V),
where:
AD - cumulative (increased) line of Accumulation/Distribution
C - close
H - high
L - low
V - volume
For working with Accumulation/Distribution Forex trading indicator you can use standard technical analysis methods, include trend lines creating, defining minimums and maximums, convergence and divergence with price. If you use moving average based on Accumulation/Distribution you can to get trade signals by its crossing.

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