// Downloaded From https://www.WiseStockTrader.com
// Accumulation Distribution (AD) Indicator AFL Script
// This script calculates the Accumulation Distribution line
// based on closing prices, volume, and the high/low range.

function AccumulationDistribution()
{
    // Price components
    H = High;    // High price of the current bar
    L = Low;     // Low price of the current bar
    C = Close;   // Closing price of the current bar
    V = Volume;   // Volume of the current bar

    // Calculate the AD value for the current bar
    // Money Flow Multiplier calculation
    MoneyFlowMultiplier = IIf(H == L, 0, // Avoid division by zero
                               (C - L) / (H - L));

    // Money Flow Volume calculation
    MoneyFlowVolume = MoneyFlowMultiplier * V;

    // Initialize the Accumulation Distribution (AD) array
    // AD should be cumulative, start from 0
    AD = Cum(MoneyFlowVolume); // Cumulative sum of Money Flow Volume

    return AD; // Return the AD values
}

// Call the function to calculate AD values
AD = AccumulationDistribution();

// Plot the Accumulation Distribution line
Plot(AD, "Accumulation Distribution", colorBlue, styleLine | styleThick);

// Add horizontal line at 0 for reference
Plot(0, "Zero Line", colorRed, styleLine | styleDashed);

// Create an alert condition (optional)
// This generates a buy/sell signal when the AD line crosses above/below 0
BuySignal = Cross(AD, 0);
SellSignal = Cross(0, AD);

// Plot buy/sell signals on the chart
PlotShapes(IIf(BuySignal, shapeUpArrow, shapeNone), colorGreen, 0, Low - 2*ATR(14));
PlotShapes(IIf(SellSignal, shapeDownArrow, shapeNone), colorRed, 0, High + 2*ATR(14));

// Displaying buy/sell signals in the analysis window
Filter = 1; // This will always allow the buy/sell signals
AddColumn(AD, "AD Value", 1.2);