Stock Distribution Accumulation Indicator, Definition and How to Read It


The stock distribution accumulation indicator is one of the analytical techniques that you usually use in the stock world. As the name implies, accumulation means accumulation. So it can read the stock that is being accumulated.

With the help of the latest technology today, you can do various things online, even for the stock world. As a beginner, you should understand and study stocks that are in a position to be accumulated by the dealer.

You could say if the stock will be wasted by the city. Actually to find out this information can happen with technical analysis.

Because, in the indications, indicators are available to read the theory of accumulation and distribution that occur in the capital market. This indicator is an indicator of the accumulation of stock distributions.

In this case, you need to know for the movement of the stock in the market. Reading the shares that are sold by market participants can determine the actions that can be taken to get big profits.

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Understanding the Accumulation of Stock Distribution Indicators

As many of you know, in the world of stocks, there are many strategies that you must prepare. In addition, various indicators are also available in order to get the right information on market movements.

Many analyzes are useful for observing the movement of stocks on the stock exchange. One of them is the stock distribution accumulation indicator or AD.

This indicator is a measure of the extent to which a stock has the potential to go up or down. As a shareholder you also need to know the meaning and how to use these indicators.

This is so that you can infer information from a graph.

Because many indicators are almost the same, but provide invalid data or information.

This AD indicator is calculated using volume that is confirmed by the trend. In this way, share owners can get a warning when there is a weakening stock price.

Previously, this indicator played a role in selecting stocks. But as the world of technology develops, its functions change to more and more.

So as someone who is going to play in the world of stocks, you need to know how to use them.

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How to Read AD Indicator

After you know the meaning of the stock distribution accumulation indicator or AD, you can now understand how to read it. Actually to read this indicator is quite easy.

Just like when you use any other indicator. When the indicator moves up indicates if the stock is accumulating.

Usually if this condition occurs, the increase in stock prices will follow. Vice versa, if the AD indicator moves down, it’s a sign that the stock is being distributed.

If this is the case, many market participants will throw away goods, which will cause stock prices to decline.

AD indicator is quite good. Because it is able to read the stocks that are being collected or even wasted.

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The AD indicator works for several analyses. It can be at the bottom of the price chart or right at the position of the price chart.

This helps stock analysis to make it easier to read the indicators for the accumulation of stock distributions to the fullest.


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