Accumulation/Distribution

Accumulation/Distribution is an indicator that attempts to monitor whether investors are generally buying(accumulating) or selling(distributing) stocks. It can be applied to a single stock or the general market. It is a useful indicator when there are divergences, i.e. stocks are rising and A/D is down or vice versa, signaling potential reversal.

The indicator is generally included in most stock charting software and stock sites and calculating it by hand would be unnecessary.

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