An introduction to the accumulation & distribution indicator for the TradeStation platform
An introduction to the accumulation & distribution indicator for the Tradestation platform.
If you’ve been trading for any time, you will almost certainly have come across the concept of support and resistance. This powerful and simple concept lies at the heart of technical analysis. It forms the cornerstone of price action trading.
However, you can also think of support and resistance in another way. After all, these are also price areas where a market has paused, reversed, or moved into a congestion phase before moving on. As a result, these price regions are associated with sustained buying and selling, or what Wyckoff called Accumulation and Distribution. These two concepts go hand in hand, and you can think of these in simple terms as follows:
- Accumulation relates to how an area of support performs
- Distribution relates to how an area of resistance performs
It is these two powerful concepts which come together in the Quantum Accumulation and Distribution indicator. It is the act of accumulation ( buying ) over a sustained period which creates the support region, whilst the act of distribution ( selling ) over a sustained period creates the resistance region. Having the power to see both, gives you unparalleled insights into price behavior at these key levels, and the confidence to forecast future market behavior as a result.
Most traders still draw their lines manually, leading to a crude interpretation of these key levels. Even those companies who have developed a trading indicator, have developed an equally imprecise tool. No doubt you’ve seen them. Generally, these appear as wide bands on the chart, indicating vague areas of congestion, with associated support and resistance bands. These are virtually useless. They lack precision or definition.
So, why has no one ever considered accumulation and distribution and the associated support and resistance as dynamic? After all, wouldn’t a dynamic indicator deliver high quality information where you need it most – at the live edge of the market?
Well perhaps no one has ever thought about it in this way before. After all, price action is dynamic.
Well, that’s what we thought too, and here it is at last – the Quantum Dynamic Accumulation and Distribution indicator. The first, and only dynamic indicator in the world which displays two things simultaneously. The regions of accumulation and distribution, and from that, the associated price levels of support and resistance. Even more so, it also displays the strength of these regions, the number of times they have been tested, and from which direction. This translates into a visual picture of the accumulation and distribution zones.
Finally, on your Tradestation platform, you will have an indicator that truly defines, with pinpoint accuracy, those areas of price support and resistance associated with accumulation and distribution which are so important to you as a trader.
The importance of clusters on the accumulation & distribution indicator for Tradestation
In this video we explain the importance of clusters on the accumulation & distribution indicator for Tradestation.
How to adjust the number of levels on the accumulation & distribution indicator for Tradestation
In this video we show you how to change the cluster factor on the accumulation & distribution indicator for Tradestation.
The accumulation & distribution indicator in action for stocks on the Tradestation platform
In this video we show you the accumulation & distribution indicator in action for stocks on the Tradestation platform.
More examples on the accumulation & distribution indicator for Tradestation
In this video we show you more examples on the accumulation & distribution indicator for Tradestation.