The Accumulation Distribution (A/D) forex indicator for Metatrader 4 was originally designed by Marc Chaikin.
It’s called a leading indicator that can be applied to any trading instrument, including the majors, cross pairs and exotics.
It can be used to look for divergence between the price and the indicator.
Falling prices and rising indicator A/D values suggest an upcoming rise in price. In this case, traders look for buy trading signals.
Rising prices and declining indicator A/D values suggest an upcoming fall in price. In this case, traders look for sell trading signals.
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Indicator Chart (EUR/USD H1)
The EUR/USD H1 chart below shows the Accumulation forex indicator in action.
Basic Trading Signals
Look for long signals when the Accumulation indicator A/D values are rising or look for bullish divergence between price and indicator.
Look for short signals when the Accumulation indicator A/D values are declining or look for bearish divergence between price and indicator.
We advise you to use the Accumulation forex indicator in conjunction with other technical indicators or tools to generate more reliable buy and sell trading signals.
Accumulation A/D and Renko Boxes MT4 Forex Trading Strategy
This MT4 strategy combines volume and momentum analysis with Renko trend visualization using the Accumulation A/D MT4 Forex Indicator and the Renko Boxes MT4 Forex Indicator.
The Accumulation A/D indicator helps identify buying and selling pressure by analyzing rising or declining A/D values and detecting bullish or bearish divergences with price.
The Renko Boxes indicator simplifies trend direction by showing blue boxes for bullish trends and red boxes for bearish trends.
Using these indicators together on M15 and H1 charts allows traders to capture trend continuation and reversal opportunities with a clearer view of market structure.
Buy Entry Rules
- Confirm rising A/D values or a bullish divergence on the Accumulation A/D indicator.
- Check that the Renko Boxes are showing blue boxes, indicating a bullish trend.
- Enter a buy trade at the close of the confirmation candle.
- Place a stop loss a few pips below the most recent swing low or below the nearest Renko support box.
- Take profit at the next resistance level or when Renko Boxes turn red.
Sell Entry Rules
- Confirm declining A/D values or a bearish divergence on the Accumulation A/D indicator.
- Check that the Renko Boxes are showing red boxes, indicating a bearish trend.
- Enter a sell trade at the close of the confirmation candle.
- Place a stop loss a few pips above the most recent swing high or above the nearest Renko resistance box.
- Take profit at the next support level or when Renko Boxes turn blue.
Advantages
- Combines volume-based accumulation analysis with trend visualization for high-probability setups.
- Renko Boxes filter out market noise, making trend direction clearer.
- Applicable on M15 and H1 charts for intraday and swing trading.
- Accumulation A/D detects divergences, highlighting potential trend reversals early.
- Supports disciplined trading by combining trend and volume confirmation.
- Can be used for trend-following or countertrend setups depending on divergence signals.
Drawbacks
- Divergence signals may give false alerts during strong trending periods.
- Renko Boxes can lag slightly in volatile markets, delaying entries or exits.
- Limited opportunities in sideways or low volatility markets.
- Some currency pairs may produce less predictable A/D signals.
Example Case Study 1
On USDJPY H1, the Accumulation A/D indicator showed rising values with a bullish divergence.
Renko Boxes displayed blue boxes confirming the bullish trend.
A buy trade was entered at candle close with a stop loss below the recent swing low.
Price moved upward steadily and the trade closed near the next resistance level, capturing a 45 pip gain.
Example Case Study 2
On EURCAD M15, the Accumulation A/D values were declining while a bearish divergence appeared.
Renko Boxes turned red, indicating a bearish trend.
A sell trade was entered with a stop loss above the recent swing high.
Price moved downward and the trade was closed when Renko Boxes flipped to blue, securing a 19 pip gain.
Using both indicators allowed a disciplined and high-probability scalp.
Strategy Tips
- Focus on major currency pairs with strong trend behavior for the best results.
- Wait for both volume signals and Renko trend alignment before entering trades.
- Use ATR or recent volatility levels to set stop loss and take profit effectively.
- Monitor multiple timeframes to confirm overall market direction.
- Skip trades if either volume or trend signals are unclear to reduce low-probability setups.
- Be patient and wait for the proper alignment of A/D and Renko Boxes for safer entries.
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Download the “Accumulation.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: leading
