Accumulation/Distribution Indicator
Info
The Accumulation/Distribution Indicator is a Indicator for MetaTrader 5 that the accumulation/distribution technical indicator is a valuable tool for traders, as it considers both price and volume changes. Volume serves as a weighting factor, influencing the impact of price changes on the indicator's value.
Usage
This tool is typically used for enhancing chart analysis and decision making.
Platform
This Indicator works exclusively on MetaTrader 5 (both build 600+ and newer versions).
Setup
Place the downloaded file in MQL5/Indicators folder via File ? Open Data Folder in MetaTrader 5.
How to Install and Use Accumulation/Distribution Indicator
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
What this tool does
The Accumulation/Distribution technical indicator is a valuable tool for traders, as it considers both price and volume changes.
Typical Use Case
This Indicator excels in automated trading and technical analysis on MetaTrader 5.
Compatible Platform & Setup
This Indicator works on MetaTrader 5. Place the file in the MQL5/Indicators folder and restart the terminal.
Description & Settings
Related: Price Channel Indicator - another powerful indicator for MetaTrader 5 traders.
The Accumulation/Distribution technical indicator is a valuable tool for traders, as it considers both price and volume changes. Volume serves as a weighting factor, influencing the impact of price changes on the indicator's value.Also recommended: Multi-Timeframe Moving Average Indicator (v03) - similar indicator with strong performance on MetaTrader 5.
This indicator is a variation of the widely used On Balance Volume indicator, both designed to validate price movements through volume analysis. When the Accumulation/Distribution indicator rises, it signifies accumulation or buying activity, indicating that the majority of trading volume occurs during upward price trends. Conversely, a declining indicator suggests distribution or selling, with most trading volume associated with downward price movements.
Divergences between the indicator and security price can foreshadow impending price shifts. Typically, the price trend follows the direction of the indicator. For instance, if the indicator is increasing while the security price is falling, a price reversal may be imminent.
Calculation:
The indicator's value is adjusted based on the relationship between the closing price and the day's high and low prices. The closer the closing price is to the day's high, the more volume is added to the indicator's value. Conversely, if the closing price nears the day's low, a greater volume is subtracted. If the closing price is precisely midway between the high and low, the indicator's value remains constant.
A/D(i) = ((CLOSE(i) - LOW(i)) - (HIGH(i) - CLOSE(i)) * VOLUME(i) / (HIGH(i) - LOW(i)) + A/D(i-1)
where:
- A/D(i) is the Accumulation/Distribution indicator value for the current bar.
- CLOSE(i) is the closing price of the bar.
- LOW(i) is the lowest price of the bar.
- HIGH(i) is the highest price of the bar.
- VOLUME(i) is the trading volume.
- A/D(i-1) is the Accumulation/Distribution indicator value for the previous bar.
You may also like: Multi-Timeframe Relative Strength Index (MTF RSI) Indicator for MT4/MT5 - excellent alternative for indicator users on MetaTrader 5.
⚠ Limitations & Risk Warning
- This tool is provided for educational and testing purposes only.
- Past performance does not guarantee future results.
- Trading involves substantial risk of loss. Use on a demo account first.
- Results may vary depending on market conditions, broker, and settings.
- We recommend thorough backtesting and forward testing before using with real funds.