True Accumulation/Distribution — Indicator by RezzaHmt

Accumulation/Distribution is developed by Marc Chaikin to provide insight into strength of a trend by measuring flow of buy and sell volume.

The fact that A/D only factors current period's range for calculating the volume multiplier causes problem with price gaps. They are ignored or even misinterpreted.
True Accumulation/Distribution solves the problem by using True Range instead of only relying on current period's high and low.

In this example you can see when a gap has occurred in Amazon Inc.'s daily chart True A/D has handled it better than Accumulation/Distribution which a bearish close in period's range has caused it to misinterpret the strong buy pressure as sell volume.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

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