Accumulation/Distribution Line (A/D)
The A/D Line measures the cumulative flow of money into and out of a security. It uses the relationship between the close and the high-low range, weighted by volume.
- Family
- Volume
- Series
- Single series
- Best timeframes
- H4 · D1
- Last updated
- 2026-03-21
TL;DR
- A/D is a volume indicator used in technical analysis
- Rising A/D confirms accumulation (buying). Falling A/D confirms distribution (selling). Divergence between A/D and price signals potential reversal.
- Best timeframes: H4, D1
- Skip to API docs
What is Accumulation/Distribution Line?
The A/D Line measures the cumulative flow of money into and out of a security. It uses the relationship between the close and the high-low range, weighted by volume.
How A/D is calculated
CLV = ((Close - Low) - (High - Close)) / (High - Low)
A/D = A/D(prev) + CLV × Volume
CLV = Close Location Value How to interpret A/D
Rising A/D confirms accumulation (buying). Falling A/D confirms distribution (selling). Divergence between A/D and price signals potential reversal.
Trading strategies using A/D
Strategy 1: A/D Trend Confirmation
Use A/D to confirm price trends and spot divergences.
Entry rules
Enter long when both price and A/D are rising. Watch for bearish divergence when price rises but A/D falls.
Exit rules
Exit when A/D diverges from price trend.
Combining A/D with other indicators
A/D works best when combined with complementary indicators:
- A/D + OBV: Combine for stronger confluence signals
- A/D + MFI: Combine for stronger confluence signals
- A/D + Tick Volume: Combine for stronger confluence signals
A/D across different timeframes
A/D works across all 7 timeframes but performs best on H4, D1 for most trading styles.
Accessing A/D via the TickAtlas API
GET https://tickatlas.com/v1/indicator
Python example
import requests
url = "https://tickatlas.com/v1/indicator"
headers = {"X-API-Key": "YOUR_API_KEY"}
params = {
"symbol": "EURUSD",
"indicator": "AD",
"timeframe": "H1"
}
response = requests.get(url, headers=headers, params=params)
data = response.json()
print(data) Sample response
{
"success": true,
"data": {
"symbol": "EURUSD",
"indicator": "AD",
"timeframe": "H1",
"value": 1234567,
"updated_at": 1711548000,
"server_time": "2024-03-27T14:00:00+00:00",
"bid": 1.0856,
"ask": 1.0857
}
} Common mistakes to avoid
- Using A/D absolute values instead of trend direction
- Not recognizing A/D divergence as an early warning signal
Frequently asked questions
How is A/D different from OBV?
OBV adds or subtracts the entire volume based on close direction. A/D weights volume by how close the price closed to the high vs low, giving a more nuanced view of buying/selling pressure.
Continue learning
More volume indicators
- Indicator
On-Balance Volume (OBV)
OBV is a cumulative volume indicator that adds volume on up days and subtracts on down days.
Read more - Indicator
Money Flow Index (MFI)
MFI is a volume-weighted version of RSI.
Read more - Indicator
Tick Volume (Tick Vol)
Tick Volume measures the number of price changes (ticks) within a period.
Read more
Put A/D to work in your application.
Sign up with $2.50 of starting credit and query pre-calculated A/D data across 7 timeframes, from M1 to D1.