ADL (Accumulation/Distribution Line)

The ADL measures cumulative money flow by combining price and volume. Unlike OBV which uses the full volume, ADL weights the volume by where the close falls within the high-low range.

Declaration

function init(ctx) {
  ctx.indicator('adl', 'ADL', {});
}

Options

ADL requires no options. It uses high, low, close, and volume data automatically.

Output

Returns a single number[] series (cumulative).

Accessing Values

function onBar(ctx, i) {
  const adl = ctx.ind.adl[i];
}

Use Cases

Divergence Detection

function onBar(ctx, i) {
  const priceUp = ctx.series.close[i] > ctx.series.close[i - 10];
  const adlUp = ctx.ind.adl[i] > ctx.ind.adl[i - 10];
  
  // Price rising but ADL falling = distribution (bearish)
  if (priceUp && !adlUp) {
    ctx.order.close('ASSET', { signal: 'sell', reason: 'adl_divergence' });
  }
  
  // Price falling but ADL rising = accumulation (bullish)
  if (!priceUp && adlUp) {
    ctx.order.market('ASSET', 1, { signal: 'buy', reason: 'adl_accumulation' });
  }
}

Calculation

1. Money Flow Multiplier = $\frac{(Close - Low) - (High - Close)}{High - Low}$
2. Money Flow Volume = Multiplier x Volume
3. ADL = cumulative sum of Money Flow Volume

Related

• OBV - Simpler cumulative volume indicator
• MFI - Volume-weighted RSI oscillator
• VWAP - Volume Weighted Average Price