Medium Accumulation/Distribution (Medium A/D)

Overview

The Medium Accumulation/Distribution (A/D) indicator represents a specialized implementation of volume-price analysis designed for intermediate-term traders. Building on Marc Chaikin's foundational work, this variant optimizes the traditional A/D calculation for medium timeframes, typically analyzing price-volume relationships over 14-day periods. The indicator excels at revealing hidden accumulation or distribution patterns that might be obscured in shorter timeframes while remaining responsive enough to capture meaningful market shifts. By calculating the close location value (CLV) - which measures where price closed relative to the day's range - and multiplying by volume, the Medium A/D creates a cumulative line that tracks the flow of smart money in and out of securities.

What distinguishes the Medium A/D from its standard counterpart is its focus on filtering out short-term noise while maintaining sensitivity to genuine accumulation or distribution phases. The indicator operates on the principle that sustained buying pressure will push closes toward the upper portion of daily ranges, while distribution phases see closes clustering near daily lows. This medium-term perspective proves particularly valuable for swing traders and position traders who need to identify when institutions are quietly building or liquidating positions. The cumulative nature of the calculation means that each period's money flow is added to or subtracted from the running total, creating a smooth line that clearly shows whether buying or selling pressure is prevailing over time.

Interpretation & Trading Signals

Example Usage

Code examples will be available once the Rust implementation is complete.