Monday, 24 July 2017

Accumulation: a momentum indicator for stock market trading

Accumulation or distribution is a momentum indicator that tracks the relationship between volume and price of a stock. It is often believed a leading indicator because it shows when a stock is being accumulated or distributed, forewarning major price moves. It is estimated by first computing the money flow multiplier and then multiplying the money flow multiplier by the period's volume. 

It is an indicator that When the Accumulation/Distribution line is moving in the same direction as the price trend, it confirms the trend. Whereas if is moving in the opposite direction of the price trend, it indicates the price trend may not be sustainable.

The accumulation/distribution line may be used as an indicator to confirm whether a stock is trending. If stock price is in a downtrend while the accumulation/distribution line is in an uptrend, the indicator shows there may be buying pressure and the stock price may reverse. Consequently, the stock may reverse and trend up and vice versa.  

If you follow this indicator in Stock market tips trading, then you may have some problem at the initial stage but once you will get familiar with this, you can be made better utilise of it. You can also take help from experts. If you are looking for one of the best experts then Money Classic Investment Advisers is the leading advisory company provide stock market tips to the traders so that they can make profit. 

We offer authentic stock market tips for the effective trading. We have a huge client base that are trading and making good profit with the help of stock market tips provided by us. You can also trade with the help of stock market tips offered by us to make desire profit.

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