top of page

Indicator:

A/D Line

The Accumulation/Distribution Line is a volume-based indicator that evaluates the relationship between price movement and volume to determine whether a security is being accumulated or distributed. By analyzing the cumulative flow of volume, it provides insights into the underlying strength of a trend and helps traders assess the potential for trend continuation or reversal. This indicator is particularly useful for confirming price movements and identifying divergence between volume and price trends.

A/D Line (Accumulation/Distribution Line) Indicator


Type of Indicator

The Accumulation/Distribution Line, often abbreviated as A/D Line, is a technical analysis indicator used in financial markets. It is a volume-based indicator that combines price and volume changes to help determine whether a market is in an accumulation (buying) or distribution (selling) phase.


Purpose

The primary purpose of the A/D Line is to identify the overall price trend and potential reversal points by analyzing the relationship between price and volume. This indicator is used to confirm the strength of a trend and to detect possible turning points.


Calculation Method

Calculating the A/D Line involves several steps:


Calculate the Money Flow Multiplier (MFM):

where:

  • CC is the closing price,

  • LL is the low price,

  • HH is the high price.

Calculate the Money Flow Volume (MFV):
Add the MFV to the previous A/D Line value:

Trading Based on the A/D Line Indicator


  1. Trend Confirmation:

    • If the A/D Line is rising along with prices, it suggests a strong uptrend. This can be interpreted as a signal to buy.

    • If the A/D Line is falling along with prices, it indicates a strong downtrend. This might be a signal to sell.


  2. Divergences:

    • Bullish Divergence: If the price reaches new lows…

Futures-focused prop firms grant capital access to traders after passing specific trading assessments. Covering various futures contracts such as commodities and indices, these firms offer extensive educational programs, real-time market analysis, and professional mentoring. Traders gain hands-on experience and develop robust strategies while leveraging the firms' resources, enhancing their trading abilities in a competitive environment designed to foster growth and success.

Reliable Futures Prop Trading Firms for Traders

logo_288x162_xm.png
Alpha Futures offers futures trading with substantial capital, profit splits up to 90%, and rigorous risk management. Join with a capital allocation of up to $450K.

Instruments:

CME

Platforms:

AlphaTicks
logo_288x162_xm.png
Purdia Capital offers professional futures trading with various account types, up to 90% profit split, and a strong risk management system. Start trading with proven platforms.

Instruments:

CME, COMEX, CBOT, NYMEX

Platforms:

Tradovate, TradingView, NinjaTrader
logo_288x162_xm.png
Savius offers instant funding for futures traders, with profit shares up to 80% and accounts up to $300K. Trade on CME, CBOT, NYMEX with advanced platforms.

Instruments:

CME, COMEX, CBOT, NYMEX

Platforms:

Atas, Quantower, Volsys, Volbook

Tools like Trading Central, Yahoo Portfolio & Tracker, and Autochartist assist traders in making informed market decisions. They provide features like technical analysis, automated alerts, and performance tracking, which help traders quickly spot trading opportunities. These tools are designed to cater to various markets, from US stocks to forex and commodities, allowing traders to adapt strategies based on data-driven insights. By integrating advanced analytics with user-friendly interfaces, they support traders in navigating complex markets.

Best Trading Tools for Market Analysis

Trading Central offers advanced technical analysis, real-time market data, and comprehensive insights into financial instruments. It helps traders efficiently identify patterns and potential trading opportunities, making informed decisions based on reliable data and expert analysis.
Myfxbook Economic Calendar helps investors track key economic events and analyze their potential impact on financial markets. It offers detailed event descriptions and historical data, enabling traders to anticipate market reactions and make better-informed trading decisions.
Autochartist identifies technical patterns in real-time, offering traders alerts and detailed analyses to optimize investment decisions. It provides a variety of pattern recognition tools that help traders anticipate market movements and react swiftly to changing conditions.
Yahoo Portfolio & Tracker allows investors to manage portfolios, access real-time data, and utilize advanced analytical tools for making informed investment decisions. It provides a user-friendly platform to track market trends, news, and individual stock performance comprehensively.
Forex Factory Traders provides detailed analytics and a social platform for currency traders to share strategies, track performance, and discuss market trends. It fosters a community where traders can learn from one another and improve their trading tactics through collective insights.
TradingView Ideas lets traders share market analyses and strategies, fostering knowledge exchange and enhancing trading skills through active community interaction. It serves as a valuable platform for users to discuss trading ideas, study market trends, and follow experienced traders' recommendations.

Online stock brokers offer investors easy access to shares of companies across different sectors, supporting a diversified approach to investing. These brokers provide advanced trading tools, expert research, and market data to enhance decision-making. Investors can benefit from the flexibility to trade on global exchanges, enabling them to pursue growth and income strategies. With features like real-time alerts and user-friendly platforms, brokers help investors navigate the stock market and aim for consistent portfolio growth.

Best Online Brokers for Stock Market Access

logo_288x162_xm.png
Lightspeed is a top broker for active stock traders offering low commissions and advanced platforms like Lightspeed Trader. Enjoy fast execution, flexible pricing, and access to major exchanges.

Instruments:

US Stocks: NYSE, NASDAQ, AMEX, OTC Markets

Platforms:

Lightspeed Trader, Eze EMS Pro, Eze EMS Express, Sterling Trader Pro, Sterling Vol Trader, SILEXX OEMS
logo_288x162_xm.png
Alaric Securities provides zero-commission US stock and options trading, along with access to NYSE and NASDAQ. Benefit from fast execution, advanced tools, and competitive rates on other markets.

Instruments:

US Stocks: NYSE, NASDAQ, AMEX, OTC Markets

Platforms:

Hammer Proâ„¢, Hammerâ„¢ Lite+, Hammerâ„¢ Lite, Sterling Trader Pro, Sterling LST
logo_288x162_xm.png
Ally Invest provides commission-free trading for stocks and ETFs, low-cost options at just $0.50 per contract, and powerful tools like real-time data and margin trading for both new and experienced investors.

Instruments:

US Stocks: NYSE, NASDAQ, AMEX, OTC Markets

Platforms:

Ally Invest Web Platform, Ally Invest Desktop, Ally Mobile App
bottom of page