A/D fails during news events, thin sessions, and gap-heavy markets. Readings lag during fast moves and distort in forex due to tick volume. Crypto volatility creates misleading divergence. Recognizing failure conditions prevents losses. Why does A/D fail for you?
Prop Firm BridgeOfficial
Accumulation/Distribution fails because it relies heavily on cumulative volume flow without pricing in sudden structural shifts, order book imbalances, or liquidity sweeps. When trading with prop firms, relying on lagging indicators during high-impact news events can easily breach strict daily drawdown limits or violate news-trading rules. Always combine volume indicators with clear price action and risk controls. How do you filter out false signals when using A/D?
