Accumulation/Distribution Line (ADL)

Cumulative volume indicator weighted by where the close falls within the daily range, revealing accumulation and distribution patterns

Property	Value
Category	Valuation Metrics
Unit	USD
Resolution	1d
Assets	BTC
Tier	Basic
API Endpoint	GET /v1/holder/valuation
Field	adl

Overview

Accumulation/Distribution Line (ADL) is a volume-based indicator that uses the relationship between an asset's closing price and its high-low range to determine whether the asset is being accumulated (bought) or distributed (sold). Unlike OBV which only considers close-to-close direction, ADL weights each day's volume by the Close Location Value (CLV), capturing where the close falls within the day's range.

> Volume source: This metric uses spot exchange trading volume in USD (not on-chain transfer volume). This reflects actual market trading activity across centralized exchanges.

Formula

$$\text{CLV} = \frac{(\text{Close} - \text{Low}) - (\text{High} - \text{Close})}{\text{High} - \text{Low}}$$ $$\text{ADL}_t = \text{ADL}_{t-1} + \text{CLV}_t \times \text{Volume}_t$$

The CLV ranges from $-1$ (close equals low) to $+1$ (close equals high). When the close is near the high, most of the volume is added; when near the low, most is subtracted.

Interpretation

• Rising ADL indicates that the asset is being accumulated — closes are consistently near the highs of the daily range on heavy volume
• Falling ADL indicates distribution — closes are near the lows of the range
• ADL divergence from price is a powerful signal: price making highs while ADL falls suggests hidden selling pressure
• ADL is most useful for confirming trends rather than generating standalone signals

Use Cases

• Accumulation/distribution identification: Determine whether institutional or large players are building or reducing positions
• Divergence signals: ADL failing to confirm price highs or lows can precede reversals
• Trend strength assessment: A trend supported by ADL movement in the same direction is more robust
• Comparison with OBV: ADL provides different information since it considers intraday price action, not just close-to-close direction

API Usage

curl -H "Authorization: Bearer YOUR_API_KEY" \
  "https://api.blocklens.co/v1/holder/valuation?start_date=2024-01-01&end_date=2024-12-31&limit=365"

Related Metrics

• On-Balance Volume (OBV) — Cumulative volume flow indicator that tracks whether volume is flowing into or out of an asset based on price direction
• Volume Price Trend (VPT) — Cumulative volume-weighted price momentum indicator that confirms trend strength by measuring whether volume flows into or out of an asset
• Block Price Trend (BPT) — Cumulative indicator that tracks the relationship between Bitcoin block production rate and price movements — rising BPT signals alignment between mining activity and positive price action