Accumulation/Distribution

Accumulation/Distribution is a technical indicator that measures whether smart money is buying or selling a stock by comparing its closing price to its trading range. It combines price movement with trading volume—the idea being that heavy buying pushes prices toward the high end of the day's range, while selling pushes them toward the low end. You'll see this on stock charts alongside price data; traders use it to spot hidden buying or selling pressure that price alone might miss. For example, if a stock closes near its daily high on heavy volume, the indicator rises, suggesting accumulation (buying). It's not a crystal ball, but it can help confirm whether a price move has real conviction behind it.