The Chaikin Accumulation Distribution indicator is a momentum indicator that associates changes in price with the daily range.
Calculation:
Calculate Money Flow Multiplier: [(Close - Low) - (High - Close)] / (High - Low)
Calculate Money Flow Volume: (Money Flow Multiplier * Volume for the Period)
ADL = Previous ADL + Current Period's Money Flow Volume
Divergences between the Accumulation/Distribution and the security's price imply a change is imminent. When a divergence does occur, prices usually change to confirm the Accumulation/Distribution. For example, if the indicator is moving up and the security's price is going down, prices will probably reverse and start going up.
If the days price change is positive then the difference in the daily high and low price is added to the total, and conversely if the daily change is negative then the daily range is subtracted from the total.
You can calculate the Moving Average of the resulting Accumulation/Distribution line by entering in the number of periods within the Moving Average in the first parameter box.