ICT Professional Accumulation Distribution

4 日前

ICT Professional Accumulation Distribution (ICT AD) provides a x-ray view into market accumulation and distribution. You can literally see the institutions at work.

The indicator consists of two cumulative lines derived from:

1. Cumulative change from open to close
   
2. Cumulative change from previous close to new open
   

By overlaying these two cumulative lines, you can detect real meaningful divergence that is narrative based not mathematically derived. You're seeing the real works of algorithms in play working in this area.

These divergences are only useful at extremes (topping or bottoming formations), not while trending. It will probably confirm your suspicion about making a important high or low.

This works on all timeframes but is most impactful on the daily.

How to use:
Method 1:

• Enable the option for "Show Open vs Close."
  
• Calculate the shift by subtracting the "Open vs Close" line value from the ICT Accumulation/Distribution (AD) line value.
  
• Look for divergences between the two cumulative lines.
  

Method 2:

• Switch the chart's display mode to "Line View" (representing the Open vs Close).
  
• look for divergences between the line chart and the ICT AD line.