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Accumulation/Distrubution in Forex?

  • Post #1
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  • First Post: Nov 19, 2006 4:38am Nov 19, 2006 4:38am
  •  PipRippy
  • | Joined Apr 2006 | Status: idiot trader | 81 Posts
While reading the article-"Tools of the Trade", by Martha Stokes in NOV 2006 TASC, I am trying to find out how to measure accumulation/distrubution in the forex market.

I am curious about any TA indicators that measure accumulation and distrubution while charting forex.

I mainly use rsi/stoichastics/oscillators in range or sideways markets
I use several momentum setups in trending market

I have always read that one of the parameters of trading you need to monitor is accumulation/distrubution. With stocks I would do this by monitoring volume with various indicators. The forex in volume does not appear to be as reliable as volume in equites.

Any advice or methods is greatly appreciated- Ty
  • Post #2
  • Quote
  • Nov 19, 2006 7:08am Nov 19, 2006 7:08am
  •  Leader
  • | Joined Oct 2006 | Status: Prof Herman | 79 Posts
A/D of Larry Williams is hardly applicable to FOREX. Volume means activity of the market.

Larry means sum of money.
It is rather different.
Prof Herman
 
 
  • Post #3
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  • Nov 20, 2006 2:50pm Nov 20, 2006 2:50pm
  •  PipRippy
  • | Joined Apr 2006 | Status: idiot trader | 81 Posts
I think she might have been describing the concept of accumulation/distrubution in markets as a theory? Not so much the actual indicator itself, but maybe, buyers moving into and out of a item. The cycle of supply/demand or fear and greed.

My problem is that I cannot figure out how exactly accumulation/distrubution is different then overbought/oversold? I remember reading something that A/D is usually associated with volume. If there is some concept to accumulation/distrubution that I could apply to the forex market I am interested in looking into it.

I just decide if the market is trending or in range(it is usually in a range). Most likely it is range bound so I use oscillators or momentum setups to trade etc..

If there is some way I could use accumulation/distrubution as a third market state or something- I might be able to better evaluate the market.

When I read the article it made me start thinking about A/D. I remember reading about in Farley's Swing Trading book and other sources. Now I just need to learn how to try and apply it somehow!
 
 
  • Post #4
  • Quote
  • Nov 22, 2006 5:33am Nov 22, 2006 5:33am
  •  Leader
  • | Joined Oct 2006 | Status: Prof Herman | 79 Posts
There is nothing simpler to try A/D. I am nor sure in the result.

A/D= volume * (close - open ) /(high - low)

Best signals give divergence of max/min price and the indicator.
Prof Herman
 
 
  • Post #5
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  • Nov 22, 2006 6:29am Nov 22, 2006 6:29am
  •  Zeuzere
  • | Joined Oct 2006 | Status: Hum! I like trend | 217 Posts
Hi!
I use TD, A/D, OBV, volume and price action to do transaction.

A/D is really good when you see divergence or confirming trend.
OBV is almost the same but more volatile.
overbought/oversold try tell the extreme point in time, but A/D show you the behind the scene of the market.
If price go higher but volume go lower over time, less peoples is buying, so buying gets more and more dangerous and if A/D and/or OBV tell you to short(divergence), be prepare to reverse.

Volume are great, but you must be willing to take time. Its easy to understand but to use in real time is not so easy.

I do not know if volume is reliable in forex, but it tell you a lot. Volume in forex is not as clear as stock for sure. Some currency are better for volume. I use volume on 15 minutes to 4 hours charts only.

Quoting PipRippy
Disliked
I think she might have been describing the concept of accumulation/distrubution in markets as a theory? Not so much the actual indicator itself, but maybe, buyers moving into and out of a item. The cycle of supply/demand or fear and greed.

My problem is that I cannot figure out how exactly accumulation/distrubution is different then overbought/oversold? I remember reading something that A/D is usually associated with volume. If there is some concept to accumulation/distrubution that I could apply to the forex market I am interested in looking into it.

I just decide if the market is trending or in range(it is usually in a range). Most likely it is range bound so I use oscillators or momentum setups to trade etc..

If there is some way I could use accumulation/distrubution as a third market state or something- I might be able to better evaluate the market.

When I read the article it made me start thinking about A/D. I remember reading about in Farley's Swing Trading book and other sources. Now I just need to learn how to try and apply it somehow!
Ignored
Sorry for my bad english translation
 
 
  • Post #6
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  • Nov 22, 2006 6:34am Nov 22, 2006 6:34am
  •  et_phonehome_2
  • | Joined May 2006 | Status: Member | 809 Posts
In the FX market, would this concept even apply? Even if you can get the information, is that information based upon how much activity is from your broker or is it the market overall. Do you think the float indicator would help in this case? There was an article I read for Forex talking about something similar to this which was used, trying to rememebr the indicator name, but I did come upon the inidicator in the TSD forum. I forgot to download it last time...
 
 
  • Post #7
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  • Nov 22, 2006 7:14am Nov 22, 2006 7:14am
  •  Zeuzere
  • | Joined Oct 2006 | Status: Hum! I like trend | 217 Posts
Good point,Broker vs real market, thats why in forex you must not trust volume at 100%.
Maybe, thats why i do not trade only on spike volume ;-)
But im sure, if we can get our hands on real market data, it will be as chaotic.
Sorry for my bad english translation
 
 
  • Post #8
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  • Last Post: Jan 30, 2022 11:20am Jan 30, 2022 11:20am
  •  a3trader
  • | Joined Jan 2022 | Status: Member | 20 Posts
Is anyone still using A/D as part of their trading strategy?
 
 
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