📈 Accumulation/Distribution Line (ADL)

The Accumulation/Distribution Line measures the flow of money entering and exiting the market, highlighting whether investors tend to "accumulate" through buying or "distribute" through selling. We can use the ADL in two main ways: 1. To confirm the strength of a trend, when the price movement and ADL movement coincide 2. To anticipate a possible trend reversal through divergence, which can also be used to verify the "resilience" of support or resistance zones.

Interpretation: If the volume of shares purchased during upward movement (uptick) exceeds that of shares purchased during downward movement (downtick), it means investors are willing to pay a higher price to acquire the security.

If the volume during downward movement exceeds that during upward movement, investors are willing to buy only at discounted prices.