Technical Analysis Indicators: Accumulation Distribution Index (ADI)

Technical Analysis Indicators: Accumulation Distribution Index (ADI)…

Accumulation Distribution Index (ADI)

♦ As the ADI indicator goes up, it suggests that the investment instrument is purchased, that is, it is collected, and as it goes down, it suggests that there is an exit from the investment instrument.

♦ If the indicator starts to rise again after falling to a certain point, this is a buy signal for us. And if it starts to fall after reaching a certain peak, we decide to sell there.

♦ Big peaks and deep bottoms are more important.

♦ It is a nice and useful indicator for short-term transactions.

NOTE: Just like the price chart, support-resistance levels can be determined and channels can be created in the indicator chart.

NOTE: If there is a “Mismatch” between the price chart and the indicator chart, that is, if the indicator chart is decreasing during the time interval when the price chart is increasing, this tells us that the existing trend will change and switch to the opposite trend.

Next chapter: Technical Analysis Indicators: Aroon Oscillator

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