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Momentum Cycles Overbought-Oversold Contraction-Expansion ACCUMULATION-DISTRIBUTION Expansion-Contraction
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Volume moves in longer and slower trends than price most of the time. Accumulation-distribution measurements, such as this Farley's ADA, draw S/R patterns that precede and predict subsequent price movement. Note how the ADA breakout in early 1999 signaled the NXTL rally much better than the price pattern itself.
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ADA Formula (PDF 93kb)