ADL (Accumulation/Distribution Line) — what it is and how to use it in trading
Definition
ADL (Accumulation/Distribution Line) is a cumulative indicator similar to OBV, but weighting each bar's volume not binary (the whole bar's volume added or subtracted wholesale) but proportionally to how close the close sits to that bar's high or low.
How it works in the builder
The adl operand takes no parameters and returns a raw cumulative number, just like obv — it is not normalized, not bounded, and its absolute level depends on where the loaded history starts.
What it looks like on the chart
Drawn as a separate panel as a smooth rising or falling line with a light filled area beneath it — visually smoother than OBV's staircase, thanks to the proportional rather than binary volume weighting.
Typical use
Used the same way as OBV — primarily to spot a divergence with price rather than as a source of an absolute level. Rising price against a falling ADL is often read as fading accumulation of the asset.
Common pitfalls
A single bar with unusually large volume and a close right at the edge of its range can sharply shift the line's level going forward — as with OBV, the slope matters, not the specific value. A divergence with ADL does not guarantee a price reversal.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.