Accumulation/distribution index: Difference between revisions
m category fix |
intro added |
||
| Line 2: | Line 2: | ||
{{Context|date=October 2009}} |
{{Context|date=October 2009}} |
||
'''Accumulation/distribution index''' is a [[technical analysis]] indicator intended to relate price and volume in the [[stock market]]. |
|||
==Formula== |
|||
: <math> CLV = { (close - low) - (high - close) \over high - low } </math> |
: <math> CLV = { (close - low) - (high - close) \over high - low } </math> |
||
| Line 15: | Line 17: | ||
The accumulation/distribution index is similar to [[on balance volume]], but acc/dist is based on the close within the day's range, instead of the close-to-close up or down that the latter uses. |
The accumulation/distribution index is similar to [[on balance volume]], but acc/dist is based on the close within the day's range, instead of the close-to-close up or down that the latter uses. |
||
== |
==Chaikin oscillator== |
||
A Chaikin oscillator is formed by subtracting a 10-day [[moving average (finance)#Exponential moving average|exponential moving average]] from a 3-day exponential moving average of the accumulation/distribution index. Being an indicator of an indicator, it can give various sell or buy signals, depending on the context and other indicators. |
A Chaikin oscillator is formed by subtracting a 10-day [[moving average (finance)#Exponential moving average|exponential moving average]] from a 3-day exponential moving average of the accumulation/distribution index. Being an indicator of an indicator, it can give various sell or buy signals, depending on the context and other indicators. |
||
== Similar indicators == |
== Similar indicators == |
||
Other Price × Volume indicators: |
Other Price × Volume indicators: |
||
* [[Money Flow]] |
* [[Money Flow]] |
||
| Line 26: | Line 27: | ||
== See also == |
== See also == |
||
* [[Dimensional analysis]] - explains why volume and price are multiplied (not divided) in such indicators |
* [[Dimensional analysis]] - explains why volume and price are multiplied (not divided) in such indicators |
||
Revision as of 06:56, 5 November 2010
 |
 | This article provides insufficient context for those unfamiliar with the subject. (October 2009) |
Accumulation/distribution index is a technical analysis indicator intended to relate price and volume in the stock market.
Formula
This ranges from -1 when the close is the low of the day, to +1 when it's the high. For instance if the close is 3/4 the way up the range then CLV is +0.5. The accumulation/distribution index adds up volume multiplied by the CLV factor, ie.
The starting point for the acc/dist total, ie. the zero point, is arbitrary, only the shape of the resulting indicator is used, not the actual level of the total.
The name accumulation/distribution comes from the idea that during accumulation buyers are in control and the price will be bid up through the day, or will make a recovery if sold down, in either case more often finishing near the day's high than the low. The opposite applies during distribution.
The accumulation/distribution index is similar to on balance volume, but acc/dist is based on the close within the day's range, instead of the close-to-close up or down that the latter uses.
Chaikin oscillator
A Chaikin oscillator is formed by subtracting a 10-day exponential moving average from a 3-day exponential moving average of the accumulation/distribution index. Being an indicator of an indicator, it can give various sell or buy signals, depending on the context and other indicators.
Similar indicators
Other Price × Volume indicators:
See also
- Dimensional analysis - explains why volume and price are multiplied (not divided) in such indicators