What is a/D indicator & how does it work?

The A/D indicator is cumulative, meaning one period’s value is added or subtracted from the last. In general, a rising A/D line helps confirm a rising price trend, while a falling A/D line helps confirm a price downtrend.

What is accumulation distribution indicator (ADL)?

Accumulation Distribution Indicator or ADL (Accumulation Distribution Line) is a volume based indicator which was essentially designed to measure underlying supply and demand. It accomplishes this by trying to determine whether traders are actually accumulating (buying) or distributing (selling).

What are indicators & how do you use them?

Indicators are statistics used to measure current conditions as well as to forecast financial or economic trends. In the world of investing, indicators typically refer to technical chart patterns deriving from the price, volume, or open interest of a given security.

Why is ADL measurement important?

The inability to accomplish essential activities of daily living may lead to unsafe conditions and poor quality of life. Measurement of an individual’s ADL is important as these are predictors of admission to nursing homes, need for alternative living arrangements, hospitalization, and use of paid home care.