what is the accumulation distribution indicator a d 
the accumulation distribution indicator a d is a cumulative indicator that uses volume and price to assess whether a stock is being accumulated or distributed the a d measure seeks to identify divergences between the stock price and the volume flow this provides insight into how strong a trend is if the price is rising but the indicator is falling then it suggests that buying or accumulation volume may not be enough to support the price rise and a price decline could be forthcoming the accumulation distribution indicator a d formulamfm close low high close high low where mfm money flow multiplier close closing price low low price for the period high high price for the period begin aligned text mfm frac text close text low text high text close text high text low textbf where text mfm text money flow multiplier text close text closing price text low text low price for the period text high text high price for the period end aligned mfm high low close low high close where mfm money flow multiplierclose closing pricelow low price for the periodhigh high price for the period money flow volume mfm period volume begin aligned text money flow volume text mfm times text period volume end aligned money flow volume mfm period volume a d previous a d cmfv where cmfv current period money flow volume begin aligned text a d text previous a d text cmfv textbf where text cmfv text current period money flow volume end aligned a d previous a d cmfvwhere cmfv current period money flow volume 