How to Use the Accumulation/Distribution Indicator ๐
The Accumulation Distribution Line is a volume indicator that measures the cumulative flow of money into and out of a traded asset. This indicator provides insight into the strength of a trend.
๐ If the price is rising but the indicator is falling, it indicates that the accumulation volume may not be enough to support the price increase and a price decline is likely.ย
๐ The same applies to downtrends; if a market is falling, but the indicator shows that the distribution is changing to accumulation, then this divergence is a signal of a likely upcoming bullish change of trend.
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