/**
* Accumulation/Distribution Line (A/D Line) Indicator
* Cumulative measure of money flow based on price position within range
*/
export function calculateADLine(highs, lows, closes, volumes) {
if (highs.length === 0 || lows.length === 0 || closes.length === 0 || volumes.length === 0) {
return {
adLine: null,
trend: null,
};
}
let adLine = 0;
let previousAD = 0;
// Calculate A/D Line cumulatively
for (let i = 0; i < closes.length; i++) {
const high = highs[i];
const low = lows[i];
const close = closes[i];
const volume = volumes[i] || 0;
// Avoid division by zero
if (high === low) {
adLine = previousAD; // No change if no range
}
else {
// Money Flow Multiplier = ((Close - Low) - (High - Close)) / (High - Low)
const moneyFlowMultiplier = ((close - low) - (high - close)) / (high - low);
const moneyFlowVolume = moneyFlowMultiplier * volume;
adLine = previousAD + moneyFlowVolume;
}
previousAD = adLine;
}
// Determine trend based on recent movement (simplified)
let trend = null;
// Calculate trend based on slope of recent A/D values
if (closes.length >= 10) {
const recentAD = adLine;
const pastAD = closes.length >= 20
? calculateADLine(highs.slice(0, -10), lows.slice(0, -10), closes.slice(0, -10), volumes.slice(0, -10)).adLine || 0
: 0;
const change = recentAD - pastAD;
if (change > Math.abs(adLine) * 0.01)
trend = 'accumulation'; // Significant upward movement
else if (change < -Math.abs(adLine) * 0.01)
trend = 'distribution'; // Significant downward movement
else
trend = 'neutral';
}
return {
adLine,
trend,
};
}
