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Accumulation/Distribution is a momentum indicator that tries to link changes in price with volume. Basically, the more volume on a price move, the more significance it has. Actually a variation of the "On Balance Volume" indicator, the A/D attempts to confirm changes in prices by looking for large volumes too. If the A/D moves up, it means the stock is being accumulated. If the indicator moves down, it meansthat the stock is being distributed. Any divergence between the A/D and the stock's price usually ends with price changing to confirm the A/D. For example, if the A/D is rising but the stock price is going down, price will probably reverse sometime soon. When day trading, many traders use the A/D as an extra 'confirm' before placing a trade, and also use it as an aid to spotting imminent reversals. Camarilla traders of course do not need it, as the market reversal points are already clearly outlined by the Equation. To calculate the A/D, a portion of the day's volume is added or subtracted from a cumulative total. If the stock's closing price is closer to the high of the day, volume is added to the cumulative total. If the closing price is nearer to the low of the day, volume is taken away from the cumulative total.

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