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Accumulation Distribution Line (ADL)

The Accumulation Distribution Line is a technical indicator used in financial analysis to measure the flow of money into or out of a stock or security. It helps traders and investors understand whether there is more buying or selling pressure in the market.

The ADL takes into account both the price and trading volume of a security. When the ADL line goes up, it suggests that more money is flowing into the security, indicating buying pressure. Conversely, when the ADL line goes down, it implies that more money is flowing out of the security, indicating selling pressure.By analysing the ADL, traders can gain insights into the strength of buying or selling activity and potentially identify trends or reversals in the market. It can be a useful tool for decision-making when combined with other technical indicators and analysis methods.

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