: CLV = { (close - low) - (high - close) \over high - low } This ranges from -1 when the close is the low of the day, to +1 when it's the high. For instance if the close is 3/4 the way up the range then CLV is +0.5. The accumulation/distribution index adds up volume multiplied by the CLV factor, i.e. : accdist = accdist_{prev} + volume \times CLV The starting point for the acc/dist total, i.e. the zero point, is arbitrary, only the shape of the resulting indicator is used, not the actual level of the total. The name accumulation/distribution comes from the idea that during accumulation buyers are in control and the price will be bid up through the day, or will make a recovery if sold down, in either case more often finishing near the day's high than the low. The opposite applies during distribution. The accumulation/distribution index is similar to
on balance volume, but acc/dist is based on the close within the day's range, instead of the close-to-close up or down that the latter uses. ==Chaikin oscillator==