OPEN-SOURCE SCRIPT
Accumulation & Distribution Days Histogram
WHAT IT TRACKS:
• Distribution Days (Selling Pressure): Price closes down >0.2% on higher volume than previous day
• Accumulation Days (Buying Pressure): Price closes up >0.2% on higher volume than previous day
HOW IT WORKS:
The histogram displays a rolling count of distribution and accumulation days within your chosen lookback period (default: 20 bars). Green bars show accumulation days above the zero line, while red bars show distribution days below the zero line. A white line plots the net difference (accumulation minus distribution) to show the overall balance.
SETTINGS:
• Lookback Period: Number of bars to count (default: 20)
• Price Threshold: Minimum % move required (default: 0.2%)
• Colors: Fully customizable histogram colors
USAGE:
Use this to gauge the balance between buying and selling pressure. When accumulation exceeds distribution, it suggests bullish pressure. When distribution exceeds accumulation, it suggests bearish pressure.
The indicator can also serve as a market health filter:
• 0-3 Distribution Days: Bullish market condition - healthy for long positions
• 4-5 Distribution Days: Cautious - monitor for potential trend change
• 6+ Distribution Days: Bearish signal - institutional selling intensifying
Other potential uses to explore:
• Divergence analysis: Price making new highs while distribution days cluster
• Sector rotation: Compare distribution/accumulation across different sectors
• Entry timing: Wait for accumulation to exceed distribution before entering
• Risk management: Reduce position size as distribution days increase
Experiment with different lookback periods and thresholds to match your trading timeframe and style.
If you discover effective ways to use this indicator, please share in the comments below - your insights could help others, enjoy.
• Distribution Days (Selling Pressure): Price closes down >0.2% on higher volume than previous day
• Accumulation Days (Buying Pressure): Price closes up >0.2% on higher volume than previous day
HOW IT WORKS:
The histogram displays a rolling count of distribution and accumulation days within your chosen lookback period (default: 20 bars). Green bars show accumulation days above the zero line, while red bars show distribution days below the zero line. A white line plots the net difference (accumulation minus distribution) to show the overall balance.
SETTINGS:
• Lookback Period: Number of bars to count (default: 20)
• Price Threshold: Minimum % move required (default: 0.2%)
• Colors: Fully customizable histogram colors
USAGE:
Use this to gauge the balance between buying and selling pressure. When accumulation exceeds distribution, it suggests bullish pressure. When distribution exceeds accumulation, it suggests bearish pressure.
The indicator can also serve as a market health filter:
• 0-3 Distribution Days: Bullish market condition - healthy for long positions
• 4-5 Distribution Days: Cautious - monitor for potential trend change
• 6+ Distribution Days: Bearish signal - institutional selling intensifying
Other potential uses to explore:
• Divergence analysis: Price making new highs while distribution days cluster
• Sector rotation: Compare distribution/accumulation across different sectors
• Entry timing: Wait for accumulation to exceed distribution before entering
• Risk management: Reduce position size as distribution days increase
Experiment with different lookback periods and thresholds to match your trading timeframe and style.
If you discover effective ways to use this indicator, please share in the comments below - your insights could help others, enjoy.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.