The Volume Accumulation indicator combines volume and a price-weighting that shows the strength of conviction behind a trend; the Volume Accumulation indicator is a helpful tool in uncovering divergences. The formula for the Volume Accumulation formula is shown below:
The formula only gives positive volume to the day if the close is higher than the midpoint of the high and low. If the close is towards the lower half of the range of the price action, then volume is negative for the day. A chart compares the Volume Accumulation indicator with the On Balance Volume indicator that adds positive volume if the close is higher than the previous close, even if the close is only a penny higher, is given next of the stock Citigroup (C):

| Outline: | 1. Volume Accumulation | 2. Volume Accumulation Divergences |
An important use of the Volume Accumulation indicator is to confirm price movements and show divergences between the indicator and prices, signaling a potential reversal in trend. This is discussed on the next page.
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