Accum Dist - BuyPr
The Accum Dist – Buy Pr indicator was developed by Larry Williams and is based on Accumulation Distribution.
Description
Accum Dist – Buy Pr is similar to the classic Accumulation Distribution indicator except that the Accum Dist – Buy Pr does not include volume in its calculation. Accumulation occurs when the Close of the current bar is greater than the Close of the previous bar and its value is calculated based on the difference between the Close of the current bar and the True Low. Distribution occurs when the Close of the current bar is less than the Close of previous bar and its value is calculated based on the difference between the Close of the current bar and the True High.
The value of Accum Dist – Buy Pr is cumulative. Accumulation (positive values) is added to the previous Accum Dist value, while Distribution (negative values) is subtracted from the previous value. If the current Close equals the previous bar’s Close, the Accum Dist value is unchanged.
Typically, the Accum Dist indicator is used to identify divergences between price activity and the indicator itself. As with other divergences, if the market reaches new highs while the indicator is stagnant or falling, the current trend may be weakening suggesting a possible reversal. Conversely, if the market reaches new lows while the indicator is stagnant or rising, the trend may be weakening perhaps indicating a reversal.
Default Inputs
AlertLength( 14 ) determines the price ranges to use for the purpose of triggering alerts. The current high and low are compared with the highest high and lowest low of the AlertLength. The results are then used to check for divergences between current price ranges and current values of Accum Dist – Buy Pr. When divergences are identified alerts are triggered if enabled.