Accumulation Distribution Indicator

Accumulation Distribution Indicator

Accumulation Distribution is a technical MT4 indicator developed to measure trend strengths and identify market bias.

The Accumulation Distribution represents a technical trend indicator developed for MT4 platforms.

Forex and stock traders use this indicator to examine the strength and weaknesses of the market trend. Eventually, it helps you determine current price momentum and upcoming trend direction.

This trading guide will teach you how to determine market bias and profitable buy/sell signals using the Accumulation Distribution indicator in MT4.

How to Trade Forex and Stocks using the Accumulation Distribution Indicator for MT4
In order to ascertain the trend of a stock and the strength supporting the trend, the accumulation/distribution indicator examines the link between an asset’s price and its volume flow.

In essence, “accumulation” refers to the level of purchases made for that security throughout a specific time frame. However, “distribution” refers to the price at which that traded security is being sold.

More buyers seek to involve when the asset’s price increases. Therefore, the accumulation level ought to increase in tandem with the price increase. On the other hand, when the price declines, sellers desire to sell their holding positions, which impacts the distribution level.

In the above GBP/USD 4-hour chart, the price was initially roaming below the resistance at 1.34990. Once the price broke the resistance level, the Accumulation Distribution value exceeded the recent high, indicating a buy signal following the bullish breakout.

Conclusion
Accumulation Distribution is one of the best MT4 trend indicators for monitoring the changes in market momentum. From market experts to beginners in technical trading, anybody can use this indicator for its easy trading tools and simple demonstration of trend signals. Applying this indicator along with MACD and RSI can produce better results.