There are many indicators available to measure volume and the flow of money for a particular stock, index or security. One of the most popular volume indicators over the years has been the Accumulation/Distribution Line. The basic premise behind volume indicators, including the Accumulation/Distribution Line, is that volume precedes price. Volume reflects the amount of shares traded in a particular stock, and is a direct reflection of the money flowing into and out of a stock. Many times before a stock advances, there will be period of increased volume just prior to the move. Most volume or money flow indicators are designed to identify early increases in positive or negative volume flow to gain an edge before the price moves. Take a example. look at very carefully. After June month Accumulation / Distribution line was decreasing and that time volume was increasing. so it was a clear indication of distribution. Again look at the July month. Accumulation and Distribution line was moving steadily and after few days later the price increased.
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