/**
* Accumulation/Distribution Line (A/D Line) Indicator
* Cumulative measure of money flow based on price position within range
*/
export interface ADLineData {
adLine: number | null
trend: 'accumulation' | 'distribution' | 'neutral' | null
}
export function calculateADLine(
highs: number[],
lows: number[],
closes: number[],
volumes: number[]
): ADLineData {
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: 'accumulation' | 'distribution' | 'neutral' | null = 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,
}
}
