Accumulation/Distribution Line
Running total of volume adjusted for where the close falls within each bar's range; divergence with price highlights accumulation or distribution.
CLV = ((Close − Low) − (High − Close)) / (High − Low);
ADL_t = ADL_{t-1} + CLV × VolumeThe A/D Line multiplies each bar's volume by the Close Location Value — a ratio from −1 (close at the low) to +1 (close at the high) — and adds the result to a running cumulative total. It is the precursor to Chaikin Money Flow.
When the A/D Line trends upward alongside rising price, the uptrend is confirmed by volume. When price makes a new high but the A/D Line does not, the divergence suggests that large players may be selling into retail buying — a reliable early warning of distribution.