This is an indicator described by Larry Williams in one of his books. Larry won the 1987 World Cup Championship of Futures Trading, where he turned $10,000 to over $1,100,000 in a 12-month competition with real money.
Larry used this indicator to track divergences between price action and volume, which he called patterns of accumulation (bullish divergence) and distribution(bearish divergence). Its logic is similar to On Balance Volume(OBV), where it accumulates up and down volume in a single line, but also takes into account the size of the candle in its calculation, by taking the difference between the open and close, and the high and the low.
Enjoy!
Информация о релизе
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Updated to pinescript V5 Added Moving Average cloud, with option to disable it
@TRADING_as_a_BUSINESS, It intents to show capital flow. Use it in addition to price/volume data or instead of it.
Erik10
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Instead appears to be a bit optimistic, just use it as a confirmation of the movement you think to see in the price.
Orph5781
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Interesantisimo, groso! Gracias! ¿Podrias reseñar brevemente si no es molestia, de que maneras se le puede sacar el jugo?
Erik10
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Beautiful, thanks.
TRADINGNASA
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i just want to know that, r u using cumulative of previous and current day accumulation and distribution
TRADINGNASA
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hi ,
i am just wondering, r u using same equation and concept of larry will book " THE SECRET OF SELECTING STOCKS FOR IMMEDIATE AND SUBSTANTIAL GAINS" your reply will be highly appreciated
momochanchan
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@TRADINGNASA, I dont think it is the same equation. I remember the books equation needs open, close, high, low price from daily, then calculate the distance between these variable to determin if buyer or seller is dominating the market for any given day. working out a %, then times the % to the daily volume to workout a banchmark. It would be very helpful if the Author can explain further on how to use this indicator.
Erik10
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@momochanchan, actually this is what the source code does: ad = (close - open) / (high - low) * volume