Accumulation/Distribution Rating and Rank #

Accumulation/Distribution (A/D) Rating measures the possible buying demand or selling pressure a stock is experiencing from institutions. The rating considers 50-day average volume, closing prices, and daily closing ranges over a 13-week (one-quarter) period. The rating operates on a scale from -100 to 100, with 100 symbolizing heavy accumulation and -100 representing heavy distribution on a net basis. The more intense the buying demand, the higher the accumulation and the A/D rating. Conversely, selling pressure contributes to greater distribution, resulting in a lower A/D Rating. A score between -10 and 10 indicates a neutral balance where neither buying demand nor selling pressure prevails on a net basis.

The Accumulation/Distribution (A/D) Rank corresponds directly to the A/D rating and shares the same factors in how it is calculated. The distinguishing factor is that the A/D Rank provides a letter grade, ranging from “A+” to “F”. Here, “A+” signifies net accumulation while F represents the net distribution. Grades higher than “C” indicate increased accumulation or buying demand. A “C” grade signifies a balanced scenario where neither buying nor selling pressure dominates. Grades below “C” point to increased distribution or selling pressure. Both AD Rating and Rank have daily update cycles.