The accumulation distribution indicator is a volume-measurement type of indicator. It was devised by well-known trader and analyst Marc Chaikin as a stock selection tool, but has found subsequent wider application as a leading indicator for other markets,

The accumulation distribution indicator trading strategy can be used to identify potential price and volume divergences or to confirm a trend. It also allows detecting alerts for potential reversals. Determining trend direction

What is the Accumulation Distribution Indicator. The accumulation distribution indicator (A/D) provides information regarding the money flow in a stock. The word “accumulation” refers to the level of buying and “distribution” the level of selling.