True Move AD
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True Move A/D™
The flow-level read. One line. Two combined signals.
The standard Chaikin Accumulation/Distribution line uses a single factor — where the close sits within the bar's range. True Move A/D™ uses three, and weights them by their actual reliability.
The composite formula:
K = 0.3 × Midpoint Bias + 0.70 × Close-to-Close Direction
The 70% weight on close-to-close momentum is deliberate. Where a candle closed relative to where it opened is the most consistent signal of genuine directional commitment across bars. The two intrabar components add nuance without overwhelming the primary signal.
Everything is normalised by the prior bar's weighted average price — making the indicator cross-instrument and cross-timeframe consistent, preventing large-range bars from dominating through scale alone.
What makes this different from existing A/D indicators:
- Standard Chaikin A/D ignores the close-to-close relationship entirely
- OBV uses only direction, no magnitude
- PVT uses percentage change but no intrabar location
- True Move A/D™ combines all three into a single principled composite
Convergence is the first primary signal. It is meant to 'strip away the noise' of price action leaving only the true directional move.
Divergence is the secondary signal. When True Move A/D™ trends up while price is flat or falling, genuine buying pressure is building. When the line flattens while price makes new highs, conviction is fading before the chart confirms it.
Paired with Directional Impulse™, the two indicators provide the complete picture: True Move A/D™ answers who is winning the war (cumulative flow), Directional Impulse™ answers who won each individual battle (per-bar energy). The balance sheet and the income statement of price action.
Volume modes: None (pure price), Raw Tick, Average, Log (recommended), Log Relative. Configurable EMA signal line.
Peer-reviewed and published. Full methodology available at:
📄 ssrn.com/abstract=7050140
DOI: 10.2139/ssrn.7050140 | Author: Ebuka Obiakor
For a free complementary tool, check out Directional Impulse https://www.mql5.com/en/market/product/187176
For a tool to help you protect against drawdown (plus many more perks: Position sizing, Total position loss, Effective leverage calculation, etc.), check out : https://www.mql5.com/en/market/product/169269
