Accumulation/Distribution Percentage (ADP) [Cyrus c|:D]

Accumulation/Distribution Percentage (ADP) is used to measure money flow similar to Chaikin Money Flow (CMF) and Money Flow . It is the range-bound version of my previous indicator ADMF . This indicator can be used for analyzing momentum, buy/sell pressure, and overbought/oversold conditions. I believe that this indicator is more accurate than CMF and MFI (I will publish a TA about it one day!).

What to look for:
- When this indicator moves up, it means buy pressure is increasing and the other way around for sell pressure. Crossing 0 means that trend has changed in the given period (it is best to look for confirmation of buy/sell pressure in larger TFs)
- Overbought above 40 and oversold below -40 (these numbers vary depending on the security. Look for historical levels to determine overbought and oversold conditions of each security)
- Regular divergence shows that momentum of a trend is declining. Hidden divergence implies continuation of a trend. The non-bound mode should be more accurate for identifying divergence.
- Failure swings can detect potential reversals.

Please read Relative Strength Index and Money Flow for more information and similar disclaimers.

- hlc3 ( AKA typical price) as input source might be better than "close" as it captures more information. If you use hlc3 as a source, then change the chart type to line and set hlc3 as the source for identifying divergence.
- Use hybrid tickers e.g.(BITFINEX:BTCUSD+COINBASE:BTCUSD+BITSTAMP:BTCUSD)/3. Volume-based indicators are susceptible to wash trading/volume printing and hybrid tickers mitigate this issue.
- In non-bound mode, small TFs with longer length should be more accurate than larger TFs with standard length (same is true for many other indicators)


I have developed 4 indicators based on a simple but elegant concept of A/D ratio. A/D ratio is equal to (current close - previous close)/True Range (when there are no price gaps, True Range = High - Low)
1) What you see on ADV indicator as darker green and red is equal to A/D ratio x volume .
2) ADL indicator shows the summation of ADV
3) ADMF (or ADP in non-bound mode) shows Moving Average of ADV
4) ADP shows relative accumulation strength which is calculated as RMA(accumulations)/RMA(accumulation + distribution). ADP equation is based on RSI equation which is RMA(gains)/RMA(gains + losses). That is why these two indicators look quite similar.

PS: Please leave a like if you find these indicators useful. I am working on improvements on these and other indicators. I am trying my best to keep them as simple as possible. Please let me know in the comments if you want me to make future indicators even simpler.


Complementary indicators based on the same concept:

ADL: a replacement for Chaikin's Accum/Dist, On Balance Volume , and Price Volume Trend

ADV: a replacement for regular volume indicator

ADP also has a scaled RSI and ADMF built in (ie ADMF is obsolete).
Informacje o Wersji: - Added volume weighted RSI
- Added a band for band lovers :D
- Removed the ADP weight to make it simpler

Old v1.0 is available here:
Informacje o Wersji: - optimized the code
- made a minor change to the way price is factored
Informacje o Wersji: code optimization
Informacje o Wersji: minor clarification in settings
Informacje o Wersji: - implemented True RSI fix
- minor change in input options
Informacje o Wersji: Changed the scale from -100<>100 to 0<>100 like standard RSI. I don't like this change personally, but I received a lot of requests so I had to do it.
Informacje o Wersji: -
Informacje o Wersji: Ultimate Money Flow includes ADP together with loads of other useful features. ADP will not be updated anymore.

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Thank you for sharing.
+1 Odpowiedź
Have you considered merging some of these, for example volume with ADP?
cI8DH stinkbug
@stinkbug, volume with ADMF is merged. please read the instructions at my latest version of ADV indicator. ADP has a fixed range so it is not possible to merge it with volume without some compromises.
@cI8DH, Thanks, trying to backtest the ADV, seems like it would be really useful. I like the concept of volume behavior and how much of it was accu/dist. But i cant find a trend to it on how to use it. Trying to see how it would give insiights on potential changes. is there a good recent example of divergences that i can look for as tutorial.
thanks. appreciate your work.
cI8DH stinkbug
@stinkbug, your welcome :)

Near points of potential reversal, candles become more indecisive hence the AD ratio gets smaller leading to smaller AD volume. If aggregated using moving averages, you'll see divergence in most cases. You need to backtest it to find the best TF. See my ADMF indicator for examples of divergence. In this indicator, I have shown another way of using it based on the gap between price and volume momentum
@cI8DH, What do you think would be your best indicator that would give potential leading indication of the trend. I am trying to understand the ADP indicator not necessarily the ADMF/ADL. Went through your notes and i like the idea of the accumilation/Distr oscillators also the Chaiking Money FLow, but the gaps on that one break it.
stinkbug stinkbug
@stinkbug, RIght now i been using the PPO/Derivative indicators which i merged together. PPO basically the MACD on a % basis.
cI8DH stinkbug
@stinkbug, it's probably similar to my NMACD indicator.
cI8DH stinkbug
@stinkbug, I use an advanced versions of ADV and "Stoch Money Flow (ADMF) & Absolute Strength Index (ASI)".
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