A volume-based indicator that measures accumulation and distribution by comparing upward and downward volume within a specified time frame using a moving average.
Explore complementary indicator rolesHow it works
The indicator calculates the sum of volume during periods where price closes higher (SumUpVol) and periods where price closes lower (SumDnVol) within a specified timeframe. It then computes the difference between these volumes and divides it by the total volume to create a normalized metric.
The resulting value is multiplied by a user-defined range constant to fit the plot within a specific scale. A moving average is applied to this calculation, which helps smooth out the raw data and provide a more consistent view of volume dynamics.
Why it may be useful
This volume analysis tool provides traders with insight into the underlying buying and selling pressure within a market. By comparing upward and downward volume, traders can detect potential shifts in market sentiment and identify periods of accumulation or distribution.
The indicator helps traders understand whether institutional or professional investors are actively buying or selling, which can signal potential trend changes or continuations before they become apparent in price movement.
When to explore it
The indicator is most effective when used in markets with significant trading volume and during periods of potential trend transitions. It works well across multiple timeframes, allowing traders to analyze volume dynamics from short-term scalping to longer-term swing trading perspectives.
Traders should use this indicator in conjunction with other technical analysis tools to confirm signals and reduce false positives. It is particularly useful in volatile markets where volume can provide critical insights into market participant behavior.
Keep exploring
What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
