What is the "Accumulation/Distribution Line" (A/D)?

The "Accumulation/Distribution Line" (A/D) indicator helps traders determine the strength of buying or selling pressure on an asset’s price. It takes into account both trading volume and price changes, providing a more accurate market picture. When the A/D line is rising, it indicates accumulation of purchases, which can signal a potential price increase. Conversely, when the line is falling, a decrease in asset value is expected. By using A/D, traders gain valuable insights into trend direction, helping them make more informed market decisions.