Farley's Accumulation-Distribution Accelerator

[bugscoe]

Is this available for eSignal.

[bfry5282]

What does it do, and on what timeframes does it work?

[bugscoe]

I'm finding out about from a book entitled, The Master Swing Trader".

The ADA is based upon the Accumulation-Distribution oscillator. "ADA formations print clear S/R and trendlines as well as oscillating between expected upper-lower boundries. Use ADA to measure lag between price and volume."

Here is the formula using Tradestation language as printed in the book:

1). Start with LWAccDis above (and available in most charting programs). LWAccDis

2). Calculate the difference between the LWAccDis of current bar and prior bar. F1 = LWAccDis - LWAccDis[1]

3). Compute a 14 bar exponential moving average of this difference. F2 = @XAverage(F1, 14)

4). Smooth this average with a 7 bar exponential moving average. Farley's ADA = @XAverage(F2, 7)

5). Plot 0 Line. F3 = 0