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Does anyone know where I can get a simple accumulation/distribution histogram bar indicator. I have looked on the site and I can't seem to find one. For Ninja 7.
Thanks Hector
Can you help answer these questions from other members on NexusFi?
Hey guys, I thought many of you would enjoy and benefit from this thread. My intention is to have each poster reply and describe in as much detail as possible an indicator they want created for NinjaTrader.
There are two different Accumulation/Distribution indicators, one by Larry Williams, which is called Williams Accumulation/Distribution and the standard Accumulation/Distribution Index by Marc Chaikin.
Williams Accumulation/Distribution
The Williams Accumuilation/Distribution indicator does not take into account trading volume. If today's close is higher than yesterday's close it adds an amount equivalent to [today's close - today's true range low], if today's close is lower than yesterday's close, it subtracts an amount equivalent to [today's true range high - today's close].
Accumulation/Distribution Index by Marc Chaikin
This indicator calculates the money flow as [ volume * (2*close - high - low)/(high-low)]. If you add the money flow to yesterday's value for the accumulation/distribution index you obtain today's value.
Chaikin Money Flow Index
It is a normalized version of the Accumulation/Distribution Index. It is obtained by adding up the accumulation/distribution figures over a specified period and dividing it by the total volume. The Chaikin Money Flow Index is a NinjaTrader default indicator.
Chaikin Oscillator
The Chaikin oscillator is obtained by deducting a 10 period EMA from a 3 period EMA of the accumulation/distribution index. The Chaikin Oscillator is a NinjaTrader default indicator.
The Chaikin Money Flow Index or the Chaikin Oscillator are probably better choices than the standard Accumulation/Distribution indicators.
I am looking for a Williams accumulation distribution indicator that I can change the period. I have found a few variations with volume and with ZLEMA, but I am just looking for the basic indicator. Can anyone help?
The basic indicator does not have a setting for a period. It just accumulates the daily price moves multiplied with volume.
To calculate Williams Accumulation Distribution:
1. Calculate the true range high and true range low:
true range high is the greater of:
- high [today], and
- closing price [yesterday]
true range low is the lesser of:
low [today]
closing price [yesterday]
2. Compare today's closing price to yesterday's closing price:
if close [today] is greater than close [yesterday]
price move [today] = close [today] -true range lLow
if close [today] is less than close [yesterday]
price move [today] = close [today] - true range high
If close [today] equals close [yesterday]
price move [today] = zero
3. Multiply the price move by volume:
AD [today] = price move [today] * volume [today]
4. Calculate the cumulative total:
Williams AD = AD [today] + Williams AD [yesterday]
In the book by Steven Achelis Technical Analysis A-Z, the volume factor is omitted.
Modifying the Williams AD:
You can modify the indicator by replacing the summing up with a moving average. This is the solution adopted for the ZLEMA version of the Williams AD in the download section. It comes with a period setting for the moving average. The ZLEMA version also does not take into account volume.
If you wish a version that comes with a period, you can take that ZLEMA version and eventually modify it:
-> replace the ZLEMA with a SMA (if you are allergic to ZLEMAs)
-> add volume into the equation (if you want to stay close to the original)
