Accumulation/Distribution Line (ADL)
The Accumulation/Distribution Line (ADL) is a cumulative technical indicator that uses where the price closes within the daily range and the day's volume to gauge net inflow or outflow of capital into a security. It sums a volume-weighted daily multiplier over time to reflect accumulation or distribution pressure.
Example: Over several weeks, the ADL line trends higher in tandem with rising prices, suggesting continued inflows; later, a price rise with a flattening or falling ADL may indicate weakening participation.
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