TrueFlow AD

TrueFlow AD

TrueFlow AD is a gap-aware Accumulation/Distribution line for MetaTrader 5 that tracks true volume flow using previous-close-adjusted True Range.

The Problem

Traditional A/D indicators often misread volume around gaps and large candles, because they only use the current bar high and low and ignore the relationship to the previous close. This leads to distorted signals, fake confirmations, and confusion when price jumps but true participation is weak.

The Solution

TrueFlow AD uses True Range and previous-close-adjusted highs and lows to calculate a more realistic money flow value for each bar, then accumulates it into a smooth, gap-aware A/D style line. This helps you see where volume is truly supporting the move and where price action is hollow.

Who It Is For

• Swing traders and intraday traders who rely on volume confirmation for breakouts, trend continuation, and reversals
• Algorithmic traders and EA developers who want a clean cumulative volume-flow signal they can read programmatically
• No parameters to tune - ready to use out of the box

How It Works

1. Computes True High and True Low relative to the previous close
2. Derives True Range as the difference between these adjusted extremes
3. Measures the position of the close inside the true range to estimate bullish or bearish pressure
4. Multiplies this pressure by real exchange volume or tick volume if unavailable
5. Cumulatively sums this volume-weighted flow into a single running line

Visual Signals

• Teal line - TrueFlow AD cumulative value. Rising means accumulation, falling means distribution
• Zero level - Neutral reference separating positive and negative flow regimes

Inputs and Settings

• No user inputs - All calculations are automatic using current symbol prices and volume
• Volume handling - Uses real volume when provided by the broker, otherwise tick volume
• Precision - Formatted with 2 decimal places for readability across all symbols
• Plot start - Begins from bar 1 for a stable cumulative base
• Separate window - Draws in its own subwindow to keep the price chart clean

Trading Tip

Use the slope and direction of the TrueFlow line to confirm breakouts and trend entries. Be cautious when price makes new highs but TrueFlow AD fails to confirm with fresh accumulation as this divergence often signals weakening momentum.