Wizard Accumulation/Distribution Line

Key Features and Usage
Accumulation/Distribution Line (A/D Line):

It shows whether money is flowing into (accumulation) or out of (distribution) the asset.
Smoothed A/D Line (SMA):

Adds a moving average (SMA) to smooth the A/D Line for better trend clarity.
Useful for identifying longer-term trends.
Dynamic A/D Line Color:

The line changes color dynamically:
Green: When the A/D Line rises compared to the previous value.
Red: When the A/D Line falls.
High and Low Levels:

Plots highest and lowest levels of the A/D Line over a lookback period (default: 20).
Useful for identifying significant accumulation or distribution zones.
Price Divergence:

Highlights divergence between price and A/D Line using orange triangles.
Bullish Divergence: When price increases but the A/D Line decreases (potential buying signal).
Histogram:

A histogram showing the difference between the A/D Line and its SMA.
Positive values (green) indicate strong accumulation, while negative values (red) indicate distribution.
Benchmark Comparison:

Compares the A/D Line of the current asset to a benchmark (default: SPY).
Helps evaluate the asset's performance against a market index.
A/D Cloud:

A shaded cloud between the A/D Line and SMA.
Green Cloud: A/D Line above SMA, indicating upward momentum.
Red Cloud: A/D Line below SMA, indicating downward momentum.
Interpret Signals:

Accumulation Trends: Rising A/D Line or green histogram bars suggest strong buying interest.
Distribution Trends: Falling A/D Line or red histogram bars indicate selling pressure.
Divergences: Look for divergence signals (orange triangles) for potential reversals.
Benchmark Comparison: Use the purple benchmark A/D Line to gauge relative strength or weakness against the market.
Customize Inputs:

Modify Smoothing Length to change the sensitivity of the SMA.
Adjust the lookback period for high/low levels.
Change the benchmark ticker to any market index, ETF, or other asset.
Incorporate into Strategies:

Combine the A/D Line with other indicators (e.g., RSI, MACD) to validate buy/sell signals.
Use the A/D Cloud for trend confirmation before entering or exiting trades.
Practical Applications
Trend Following: Identify sustained accumulation or distribution phases to stay aligned with the trend.
Reversal Signals: Use divergences and histogram crossovers to spot potential turning points.
Relative Strength Analysis: Compare the asset's A/D performance against the benchmark to determine outperformance or underperformance.



"Disclaimer: This indicator is intended for educational purposes only and does not constitute financial advice. Trading involves significant risk, and users should perform their own research and consult with a licensed financial advisor before making any trading decisions."