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Revision as of 09:40, 15 May 2007 by Sharky (Talk | contribs)
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Started in June 2005, we are currently working on 795 articles


Featured Article: Accumulation/Distribution Line

The accumulation/distribution line is similar to On Balance Volume but varies by adding only a portion of each day's volume to the cumulative total depending on the position of the closing price (see calculation)

When the accumulation/distribution line is moving up it depicts buying (accumulation) and when moving down it depicts selling (distribution). When a divergence appears between the accumulation/distribution line and the price it implies that the price will reverse. For example, if the if the accumulation/distribution line is moving up and the price of the instrument is falling then the price is likely to reverse.

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