| Accumulation/Distribution | |
 A momentum indicator which tries to gauge supply and demand by discovering if investors are generally “Accumulating” (buying) or “Distributing” (Selling) a certain stock by identifying divergences between stock price and volume flow. It is calculated using the following formula: Acc/Dist = ((Close – Low) – (High – Close)) / (High – Low) * Period's volume |
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 For example, many up days occuring with high volume in a down trend could signal that the demand for the underlying is starting to increase. In practice this indicator is used to find situations where the indicator is heading in the opposite directions than the price. Once this divergence has been identified the trader will wait to confirm the reversal and make their transaction decisions using other technical indicators. |
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 Market Strength Tutorial - Here you can learn about some of the indicators that traders and brokers use to determine the direction and strength of the market's present trend. Momentum and the Relative Strength Index - These two indicators together can give the trader a better understanding of when to get in and out of an issue. The Basics of Money Flow - Learn how this indicator uses both price and volume to record a more complete picture of price action. Market Breadth: A Directory of Internal Indicators - In this tutorial you will discover the indicators that measure the force of the bulls and bears, telling you what a simple price chart cannot. Learn about volume studies, advance/decline indicators, and much more! Five Investing Pitfalls To Avoid, According to Investor's Business Daily - Common sense or common folly? Discover some approaches to circumventing typical stumbling blocks on the road to profitable investing. |
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