Definitions
In plain terms
A close near the high gives a positive weight, a close near the low gives a negative weight, and the weighted volume is accumulated.
Technical
MFM_t = ((C_t-L_t)-(H_t-C_t))/(H_t-L_t); MFV_t = V_t MFM_t; ADL_t = ADL_(t-1)+MFV_t with zero-range MFM set to 0.
Scope
This is a bar-location volume study, not the market-breadth advance/decline line.
Examples
- A reviewer computes Accumulation/Distribution Line from a small OHLCV fixture and checks readiness, units, and edge cases before publication.
Common misconceptions
- This is a bar-location volume study, not the market-breadth advance/decline line.
Concept relationships
Prerequisites
Related
Where this concept is used
Evidence and governance
- Accumulation/Distribution (A/D) Line TradingView · official platform documentation
Supports: preferred label, short definition, technical definition, formula
Limits: Does not turn the line into market breadth, identify trade initiators, or eliminate gap blind spots.
- Chaikin Oscillator TradingView · official platform documentation
Supports: preferred label, short definition, technical definition, formula
Limits: The oscillator is not adopted as a causal or predictive claim for CMF or ADL.
- Volume indicators function group TA-Lib · first party technical publication
Supports: preferred label, short definition, technical definition, formula
Limits: Library compatibility does not by itself prove a project's seed, warm-up, or missing-data policy.
- Closing Price Investor.gov · official standard
Supports: preferred label, short definition, technical definition, formula
Limits: A close is not automatically an adjusted close and may vary by market session convention.
- Reviewed by
- fintech-builder-batch-010
- Last reviewed
- 2026-08-01
- Next review
- 2027-08-01
- Record status
- evidence reviewed
This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.