title: Accumulation/distribution index
text: # Accumulation/distribution index
  
  The accumulation/distribution line or accumulation/distribution index in the stock market, is a technical analysis indicator intended to relate price and volume, which supposedly acts as a leading indicator of price movements.
  
  ## Formula
  
      $CLV={(close-low)-(high-close) \over high-low}$
  
  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, i.e.
  
      $accdist=accdist_{prev}+volume\times CLV$
  
  The starting point for the acc/dist total, i.e. 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:
  
  * Money Flow
  * On-balance Volume
  * Price and Volume Trend
  