Accumulation Distribution Indicator for Accurate Trend Trading

welcome to this training video on
accumulation distribution indicator and there are several types of accumulation
distribution indicators that are great for trend trading. there’s an index that’s accumulation
distribution have done another video on that and then what I’m going to show you
today though was developed by Larry Williams and released in his 1986 book
secret of selecting stocks accumulation distribution line we’ll just call it the
ad line straight choppy right there’s a lot of ups and downs and ups and downs
ups and downs and for that reason I find it very hard to read to make any sense
out of that I look at the black line now that black line is now the exponential
moving average the zero s so-called zero lag exponential moving average so it’s
going to move as fast as possible and basically what we’re looking for here is
we’re looking for and again we can’t treat this alone got to treat it with
other things let me be clear with that trend is legging so we cannot tray this
by itself got to treat it with a momentum indicator actually this is
considered a momentum indicator but we’re coming to use it as a trend
indicator but we have to use it with a leading indicator number one and we also
have to use it with a cycle indicator number two to time our entries because
this does not help you time when to get in when to get out and oh by the way
yeah if you subscribe to my youtube channel or even if you’re just a viewer
of my youtube channel I’ll be happy to share with you my cycle indicator that
helps you to time your entries with amazing precision I mean it’s super
accurate that’s the most precise thing you’ll ever find so just send me an
e-mail birria pop-tart rainy calm and I’ll be happy to give you access to that
ok so back here what I’m doing now is I am looking for just the angle of the
black line the zero leg moving average so here it’s flat so I would say okay
during this time there’s no trend really no clear trend you see the
markets moving pretty much sideways then we start having the black line angling
down and so therefore then I would say all right now we’ve got a different
situation now that it’s hailing down the trend is down alright and another thing
to look for by the way if you want to get a little early your signal on this
is the spread between the moving average and the actual a bean line so you’ll see
that ad line start angling down here one way by the way you can do this too is a
little extra tab you can go up here and get your crosshairs bar in lay it over
the moving average because the crosshairs bar is going to have a
whore’s and straight horizontal line on it you can look for the divergence there
– not the Virgin’s but the moving away so here you can see that the moving
average has now pulled away from the crosshairs right there all right so it’s
no longer horizontal and the blue lines move to below the black line and so this
would be about our first signal here and taking a short you know anywhere like
below the low these bars then would get you into a short trade all right moving
forward and now you see the the same thing happens so now the black line
moving over just moving up and the ad line is above it and so now we’re saying
okay now we’re going to look for trace to the long side and we definitely get
them now again look here where we get the mercury going sideways and this is a
big issue because a lot of times traders can make money with trends trans are
very commonly taught and when the market is trending up okay I’m making money
that’s cool here’s the problem though then a lot of traders give back the
money that they’ve made and sometimes more when the market goes into
consolidation so if you can just learn to avoid trend less market consolidating
markets that’s worth a lot that helps you avoid a lot of losses
and then get you back into profit so here again the moving average is moving
sideways and you can see again price basically not really going anywhere just
kind of go in sideways as well and so you just stay out there even of time or
look for a different market to be trading during that time one that’s
clearly moving up or down so here can we get it right here at this point we get
the get my arrow here this is where we get the line going up if we take our
global crosshairs I can’t do it because I do that here we’re on there let me
take that arrow off for a second just to demonstrate this example again so we’ve
got a global crosshairs there see the horizontal line and you see the moving
average they take black line moving above it the blue line above that okay
we’re in an uptrend starting right about there is where it’s confirmed again
trend is lagging so you wait for it to be confirmed you need a lot of data to
accumulate before it’s confirmed but it’s still okay you still got some money
ahead of you and so in fact if you take the trade there you don’t even have to
wait for a breakout a lot of people wait for a breakout of that high this will
actually get you in before the break out of that high and then what people trade
the breakout threat actually adding to your position by pushing your position
further into profits which is great then we say thank you so again now here we
get our reversal so the 50 ma or I’m sorry the accumulation distribution
starts going down goes below the black line okay and down down down we go so
that’s basically it and by the way this thing continues to go down right so it’s
sometimes you get short moves out of it just like anything else in the market
sometimes you get short moves sometimes you get long moves here again they cross
and what do we do we go up and if you traded that here where that signal is
again you’re up so it’s a very simple way to look at it is the simplicity of
it it’s pretty easy to read and of course I love it cuz a pretty
darn accurate as well and we like things that are simple and accurate trading
does not have to be complicated keep it as simple as possible so if you like
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now I’m also giving away one of my favorite trans trade strategies called
the rubber band Trey it has a very very very high win-loss ratio and I’m going
to give it to you for free you can learn in about 26 short minutes in a special
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30 thoughts on “Accumulation Distribution Indicator for Accurate Trend Trading

  1. Sir Thanks for this great video. Please let me know as how "14 period zero lag ema." is to be added in the indicator? I couldn't do it somehow.. Regards

  2. Great Video Barry. I have used this indicator many times before. I trade intra-day only and only Forex at the moment. So being on the right side of the current trend in vital!! Currencies can turn a dime so you can not be married to one direction. So true that many people make money trading in on direction only to give it back when the situation changes. Going to set up another screen with this set up again. Like to have many experience with many options. Thanks and have a blessed day!

  3. very nice indicator.. but what is that line on candles? i mean how many periods ma? exponential or normal ma?

  4. U r genius sir..Ur video very helpful to me for trade tnx for ur kindly guidance to us 👌👌👌👌👌👍💗…Sir plz u have any idea or can we predicate tomorrow stocks percentage of increasing or decrease if any idea plz share with us…

  5. Hi Barry, first thank you for the video very interesting.. im still having a hard time gettting the ZLEMA … I tried to find vids about it and i cant.. they dont say how to set it.. is it a builtin indicator or do you start with a normal ema and switch it to a zerolag?

  6. Hey Barry, I'm using TradeStation – they've got two different settings for A/D (BuyPr, and PrVol) – both only show a single line charted, without the "signal line" as you may. Any ideas? Thanks so much (should be on NinjaTrader by next week, so should hopefully have some of the same tools by then)

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