Accumulation/Distribution Line
A running total of volume weighted by where each period's close sat within its own range.
Formula
Money Flow Multiplier = ((Close - Low) - (High - Close)) / (High - Low); A/D = Previous A/D + Multiplier x Volume
Unit
shares
In depth
This refines on-balance volume by scaling each period's volume rather than assigning all of it to one side: a close in the middle of the range contributes almost nothing, while a close at the extreme contributes the full amount. Its notable blind spot is gaps — the multiplier compares the close only to the period's own high and low, so a session that gaps down 8% and then closes at its high produces a strongly positive contribution. Like OBV, the absolute level depends on an arbitrary starting point and only the direction matters. Described here as a calculation, with no directional claim.
Worked example
Close ₹504, high ₹512, low ₹494. Multiplier = ((504 - 494) - (512 - 504)) / 18 = (10 - 8) / 18 = 0.111. On 3,00,000 shares, the contribution is 0.111 x 3,00,000 = about 33,000.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Accumulation/Distribution Line” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.