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Accumulation Distribution - Indicator Overview

The Accumulation Distribution indicator was created by Marc Chaikin and is similar to the On Balance Volume indicator. The main difference between these two indicators is that in the Accumulation Distribution indicator the markets closing price relative to the range is multipled by the volume. Marc Chaikin used this indictor in his Chaikin Oscillator indicator, which calculates the momentum of the accumulation distribution line by using the MACD formula.  The one down side to this indictor is that it does not seem to be as strong as on balance volume.

Views: 5785 | Read more...

On balance volume - Indicator calculation and overview

Joe Granville developed on balance volume in 1963 and introduced it in his book New Key to Stock Market Profits. On balance volume was one of the first indicators to measure the buying and selling pressure of volume.

This indicator is a running total sum of positive and negative volume. If the day closes up, the volume is added to the running total and if that day closes down, the volume is subtracted from the running total. The calculation of this indicator is the general relationship between volume and the change in price.

Views: 15992 | Read more...

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