The Accumulation/Distribution study is a technical indicator created by Dominico D'Errico. The main purpose of this indicator is to help identify accumulation and ...TechnicalAnalysisAccumulationDistributionDescriptionTheAccumulation/DistributionstudyisatechnicalindicatorcreatedbyDominicoD'Errico.ThemainpurposeofthisindicatoristohelpidentifyaccumulationanddistributionmarketphasesdescribedinDowtheory.Asbothphasesarecharacterizedbypricerangecompression,theindicatorcomparesthecurrentpricerangewithitspastvalues.Twomodesofrangecalculationareavailableinthisstudy:high-lowrangeandaveragetruerange.Thestudyhastwoplots:RangeRatioandRangeFactor.RangeRatioisahistogramthatdisplaystheratioofthecurrentrange(high-lowrangeoraveragetruerangeasdefinedintheinputparameters)toapastvalueofthatrange,expressedinpercent.RangeFactorservesasareferenceline;ifhistogrambarsarebelowthisline,rangecompressionmaybetakingplace,inwhichcasethebarsaredisplayedinadifferentcolor.TheAccumulation/DistributionstrategyusesvaluesoftheRangeRatioplottoaddsimulatedbuyandsellorders.InputParametersParameterDescriptionlengthThevaluethatisusedasbothaperiodoftherangecalculationandanoffsettocollectthepastvalueoftherange.factorDefinesthepositionoftheRangeFactorline.IfaRangeRatiohistogrambarisbelowthisline,rangecompressionisrecognized.modeDefineswhethertousethehigh-lowrangeortheaveragetruerangeinthecalculations.PlotsPlotDescriptionRangeRatio Theratioofthecurrentrangetoitspastvalue,expressedinpercent.RangeFactorReferencelinefortheRangeRatioplot.Histogrambarsbelowthislinesignalrangecompression.FurtherReading1."PortfolioStrategyBasedOnAccumulation/Distribution"byDomenicoD'Errico.TechnicalAnalysisofStocks&Commodities,August2018.AccumDistPrVolAccumulationSwingIndex