Accumulation/Distribution Indicator (A/D)
The Accumulation/Distribution (A/D) Indicator is a technical analysis tool used to determine the trend of a stock by analyzing the relationship between its price and trading volume. The indicator is divided into two parts: - Accumulation: Represents the buying pressure or demand for a stock. - Distribution: Represents the selling pressure or supply of a stock. In simple terms, the A/D Indicator helps identify whether a stock is experiencing buying or selling pressure. A rising A/D indicates an upward trend, while a falling A/D suggests a downward trend. It is useful for confirming price trends and identifying potential reversals.
Related Terms
Foreign Direct Investment
Foreign Direct Investment (FDI) refers to the act of acquiring a majority stake in a...
Futures and Options
Futures and options are both types of derivative contracts, meaning their value is derived from...
Bear Market
A bear market is a period characterized by a sustained decline in the stock or...
Bottom Line in Finance
In finance, the 'bottom line' refers to a company’s key metrics, such as earnings, profits,...
Capital Growth
Capital growth refers to the increase in the value of an investment over time, including...
EBITDA MARGIN
The EBITDA margin is a ratio of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)...
