Accumulation/Distribution (ADL)

Description

The Accumulation Distribution LevelLine (ADL) indicator was developed by Marc Chaikin. The ADL is a volume indicator that represents the money flow. The ADL is an improvement of the On-Balance-Volume Indicator created by Joe Granville, which was actually one of the very first volume indicators.

Interpretation

There are two interpretations of the ADL:

Confirmation of a trend or

  1. The depiction of divergence

If the ADL is rising in an uptrend, then the money is flowing in the direction of the rising prices, thus the uptrend is confirmed. If the ADL is falling in a downward trend, money is being taken out of the stock, thus confirming the downtrend.

Usage

ADL()
ADL(IDataSeries inSeries)
ADL()[int barsAgo]
ADL(IDataSeries inSeries)[int barsAgo]

Return value

double

When using the method with an index (e.g. ADL()[int barsAgo] ), the value of the indicator will be outputted for the referenced bar.

Parameter

inSeries Input data series for the indicator

Visualization

Example

//Testing the direction of the ADL
if (IsSerieRising(ADL()) {
Print("The ADL indicator is rising.");
}

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