Volume · TickAtlas Learn

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.

10 min readUpdated 2026-03-21Volume
A/D · quick spec
GET /v1/indicator ?symbol=EURUSD&indicator=AD&timeframe=H1
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
Understand

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.

Calculate

How A/D is calculated

formula
CLV = ((Close - Low) - (High - Close)) / (High - Low)
A/D = A/D(prev) + CLV × Volume

CLV = Close Location Value
Interpret

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.

Apply

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.

Combine

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
Timeframes

A/D across different timeframes

A/D works across all 7 timeframes but performs best on H4, D1 for most trading styles.

H4D1

Learn about all 7 timeframes

Query

Accessing A/D via the TickAtlas API

GET https://tickatlas.com/v1/indicator

Python example

python
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

200 OK
{
  "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
  }
}
Avoid

Common mistakes to avoid

  • Using A/D absolute values instead of trend direction
  • Not recognizing A/D divergence as an early warning signal
FAQ

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

From learning to building

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.