AccumulateDistribute.AccumulationDistributionPeriod Method

Evaluates the accumulation/distribution indicator over a number of periods.

public double AccumulationDistributionPeriod(
   double[] highs,
   double[] lows,
   double[] volume
);

Parameters

highs: An array where the first term is the intraday high over the most recent period, the second term is the high over the previous period and so on.
lows: An array where the first term is the intraday low over the most recent periods, the second term is the high over the previous period and so on.
volume: An array where the first terms is the trading volume of the asset considered over the most recent periods, the second term is the volume over the previous period and on so.

Return Value

A double which is the value of the accumulation/distribution indicator evaluated over a period. That is, the amount of accumulation or distribution which takes place for the asset considered over the period considered.

Remarks

The accumulation/distribution indicator illustrates the degree to which an asset is being accumulated or distributed by the market over these periods. The indicator uses the closing price's proximity to the high or low over the period to determine if accumulation or reduction is taking place in the market. The proximity measure is also multiplied by the volume over the period in order to give more weight to moves with correspondingly higher volume.

Remark: This indicator is a slight generalization of the AccumulationDistribution indicator. Here the indicator may be evaluated with respect to a period of a days rather than with respect to a one day period.

Interpretation

A divergence between the price action and this indicator can signal that a trend is nearing completion, a trends continuation and break-outs from trading ranges. The actual value of this indicator is of no significance, what is significant is its change in value relative to the previous periods which can warn of a possible break-out during a trading range (falling/rising indicator), the continuation of a trend (higher highs in uptrend, or lower lows in downtrend) or a change/completion of a trend (divergence between the price action and the direction of the indicator).

Exceptions