|
|
|
|
 |
|
The Accumulation/Distribution ( ACDI ) oscillator is essentially a momentum indicator that takes Volume in as a factor. It is closely related to the On Balance Volume Oscillator, however with the momentum style calculations it could be considered to be more closely related with the underlying market.
|
 click for a larger image |
At nearly all times the oscillator will track market movements. When it is rising, the underlying market will be rising, as more and more stock is purchased and volumes increase ( Accumulation ). When it starts to head downwards the underlying market will be heading down an stock is sold off and volume decreases ( Distribution ). When a divergence in the market occurs,e.g. the Oscillator is rising but the market isn't, then this is an indicator that a change in trend is imminent. |
|
|
|
 |
|
|
