Created by Mark Chaikin, the Volume Accumulation(VA) indicator shows the cumulative volume adjusted by the difference between the close and the midpoint of the day's range.
Compared to the On Balance Volume (OBV) indicator which assigns all the day's volume to the buyers if a security closes up or to the sellers if it closes down, Volume Accumulation uses the relationship of the closing price to the mean price to assign a proportion to the volume.
You can use the Volume Accumulation as you would the OBV and let volume confirm a trend. A rising price trend will be confirmed by a rising VA line. An uptrend paired with a rising VA line is considered bullish while a VA line that diverges from the price direction of movement should warn of a near-term price correction.
Calculation:
Inputs: None
Indicator Type: Market Strength