Cash inputs and outflows from an asset are typically measured by the accumulation/distribution line (A/D line). It is similar to the on-balance volume indicator (OBV), except that it evaluates the security's closing price as well as the trading range for the period and where the closing price falls within that range. If a stock closes near its high, the indicator gives greater weight to volume than if it closes in the range's middle. OBV will perform better in some cases, but A/D will perform better in others due to the mathematical differences.

The indicator line is rising due to the stock closing above the middle of the range, signaling increased buying activity. A rising trend can be validated by this. By contrast, a decreasing A/D ratio indicates that the price is closing in the lower half of its daily range, indicating that volume is decreasing. As a result, a decreasing trend can be established.