Master Accumulation & Distribution

WHAT IS IT?

The Accumulation/Distribution indicator, developed by Marc Chaikin, measures where price closes within each bar's range and weights it by volume. A close near the high with high volume adds a large positive contribution; a close near the low subtracts. This produces a more nuanced picture of buying and selling pressure than OBV, which only considers the direction of the close. The raw A/D line is cumulative and scale-dependent.

INDICATOR PRIME IMPROVEMENTS

Master Accumulation & Distribution applies z-score normalization, making the line scale-independent and comparable across all instruments and timeframes. A configurable signal line and smoothable histogram convert the continuous A/D flow into actionable crossover signals. Green bars indicate accumulation dominant, red bars distribution dominant. ADX and cooldown filters qualify all signals. Full regular and hidden divergence detection operates on the normalized A/D line.

HOW TO USE

Master A/D is particularly powerful for detecting distribution before price breakdowns. When price is making new highs but the A/D histogram is falling, institutional traders are selling into the rally. Z-scored readings above 1.0 and below -1.0 act as extreme accumulation and distribution zones for reversal entries. Most reliable on 1H and higher timeframes.

KIT CONFLUENCE

Master A/D is the close-position volume layer of the kit, complementing OBV's direction-based calculation. When both A/D and OBV histograms simultaneously confirm the same direction, institutional pressure is confirmed from two independent volume methodologies. Combined with Premium Divergence, this creates a price momentum plus dual-volume confluence setup.

Click here to get the Momentum & Divergence Kit