Accumulation/Distribution Percentage (ADP) [Cyrus c|:D]

2018년 7월 7일

Accumulation/Distribution Percentage (ADP) is used to measure money flow similar to Chaikin Money Flow (CMF) and Money Flow. It is the range-bound version of my previous indicator ADMF. This indicator can be used for analyzing momentum, buy/sell pressure, and overbought/oversold conditions. I believe that this indicator is more accurate than CMF and MFI (I will publish a TA about it one day!).

What to look for:
- When this indicator moves up, it means buy pressure is increasing and the other way around for sell pressure. Crossing 0 means that trend has changed in the given period (it is best to look for confirmation of buy/sell pressure in larger TFs)
- Overbought above 40 and oversold below -40 (these numbers vary depending on the security. Look for historical levels to determine overbought and oversold conditions of each security)
- Regular divergence shows that momentum of a trend is declining. Hidden divergence implies continuation of a trend. The non-bound mode should be more accurate for identifying divergence.
- Failure swings can detect potential reversals.

Please read Relative Strength Index and Money Flow for more information and similar disclaimers.

Recommendations:
- hlc3 (AKA typical price) as input source might be better than "close" as it captures more information. If you use hlc3 as a source, then change the chart type to line and set hlc3 as the source for identifying divergence.
- Use hybrid tickers e.g.(BITFINEX:BTCUSD+COINBASE:BTCUSD+BITSTAMP:BTCUSD)/3. Volume-based indicators are susceptible to wash trading/volume printing and hybrid tickers mitigate this issue.
- In non-bound mode, small TFs with longer length should be more accurate than larger TFs with standard length (same is true for many other indicators)

Background:

I have developed 4 indicators based on a simple but elegant concept of A/D ratio. A/D ratio is equal to (current close - previous close)/True Range (when there are no price gaps, True Range = High - Low)
1) What you see on ADV indicator as darker green and red is equal to A/D ratio x volume.
2) ADL indicator shows the summation of ADV
3) ADMF (or ADP in non-bound mode) shows Moving Average of ADV
4) ADP shows relative accumulation strength which is calculated as RMA(accumulations)/RMA(accumulation + distribution). ADP equation is based on RSI equation which is RMA(gains)/RMA(gains + losses). That is why these two indicators look quite similar.

PS: Please leave a like if you find these indicators useful. I am working on improvements on these and other indicators. I am trying my best to keep them as simple as possible. Please let me know in the comments if you want me to make future indicators even simpler.

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Complementary indicators based on the same concept:

ADL: a replacement for Chaikin's Accum/Dist, On Balance Volume, and Price Volume Trend

ADV: a replacement for regular volume indicator

ADP also has a scaled RSI and ADMF built in (ie ADMF is obsolete).

2018년 7월 14일

릴리즈 노트

- Added volume weighted RSI
- Added a band for band lovers :D
- Removed the ADP weight to make it simpler

Old v1.0 is available here: pastebin.com/20qxHDcz

2018년 7월 26일

릴리즈 노트

- optimized the code
- made a minor change to the way price is factored

2018년 7월 29일

릴리즈 노트

code optimization

2018년 7월 29일

릴리즈 노트

minor clarification in settings

2018년 9월 15일

릴리즈 노트

- implemented True RSI fix
- minor change in input options

2018년 9월 20일

릴리즈 노트

Changed the scale from -100<>100 to 0<>100 like standard RSI. I don't like this change personally, but I received a lot of requests so I had to do it.

2018년 11월 6일

릴리즈 노트

-

2018년 11월 6일

릴리즈 노트

Ultimate Money Flow includes ADP together with loads of other useful features. ADP will not be updated anymore.