Glossary Background

Accumulation/Distribution Indicator (A/D)

The Accumulation/Distribution (A/D) Indicator is a technical analysis tool used to determine the trend of a stock by analyzing the relationship between its price and trading volume. The indicator is divided into two parts: - Accumulation: Represents the buying pressure or demand for a stock. - Distribution: Represents the selling pressure or supply of a stock. In simple terms, the A/D Indicator helps identify whether a stock is experiencing buying or selling pressure. A rising A/D indicates an upward trend, while a falling A/D suggests a downward trend. It is useful for confirming price trends and identifying potential reversals.