Accumulation is a term used to describe a market controlled by buyers; whereas distribution is defined by a market controlled by sellers. Williams recommends trading this indicator based on divergences:
Distribution of the security is indicated when the security is making a new high and the A/D indicator is failing to make a new high. Sell.
Accumulation of the security is indicated when the security is making a new low and the A/D indicator is failing to make a new low. Buy.
Thanks for the addition. I was looking for this very tool today. Due to the choppiness of the readings, I found adding a moving average of the AD was very useful.
HPotter
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@Coondawg71, You are welcome. Maybe I make it in the next post.