✓ Mathematical
◆ The PatternA/D = Σ CLV × Volume, where CLV = ((Close−Low) − (High−Close)) / (High−Low).
The Accumulation/Distribution Line — Marc Chaikin's volume-weighted indicator.
CLV = ((Close − Low) − (High − Close)) / (High − Low)
A/D = Σ(CLV × Volume)
A/D = Σ(CLV × Volume)
CLV (Close Location Value) ranges from −1 to +1. Close near the high → CLV near +1 (accumulation). Close near the low → CLV near −1 (distribution).
Unlike OBV which uses the full volume, A/D weights by WHERE price closes within the bar — giving a more nuanced view of buying vs. selling pressure.
Pattern bridge: A/D line weights volume by where price closes in its range — an attention-weighted running total.