The Accumulation/Distribution (AD) indicator for Metatrader 5 uses market volume and price for confirming buy & sell market trends.
The indicator appears in a separate chart window as a green colored line that oscillates above and below the neutral 0 levels.
Understanding the A/D indicator:
- A buy trend is confirmed when the green A/D line crosses the 0 level bottom up.
- A sell trend is confirmed when the green A/D line crosses the 0 level top down.
The following indicator inputs can be modified: AD calculation method (classical, trade station), and line style.
For M1 and M5 chart traders: the London and New York trading sessions will deliver the best trading results when using the Accumulation/Distribution (AD) indicator.
Please make yourself familiar with this technical indicator and test it first on a demo account for an extended period.
It supports all Forex pairs and any other trade instrument that can be loaded into the MT5 trading platform.
Free Download
Chart Example
The following chart shows how the Accumulation/Distribution technical indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Accumulation/Distribution Forex Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal occurs when the green colored AD line crosses back above 0.
- Open a buy trade and place your stop loss 2-3 pips below support.
- Exit the buy trade for a fixed take profit target of your preference, or wait until the line crosses back below 0.
Sell Signal
- A sell signal occurs when the green colored AD line crosses back below 0.
- Open a sell trade and place your stop loss 2-3 pips above resistance.
- Exit the sell trade for a fixed take profit target of your preference, or wait until the line crosses back above 0.
