The Volume Accumulator is used in technical analysis to identify strengths and weaknesses in a market. It is derived from the On Balance Volume indicator, except that instead of giving all the volume to bears on red days and bulls on green days it gives a proportional amount to both depending on the relative close price. As with many trading indicators, classic divergence between the VA and the close price may indicate an incoming reversal.
As a general rule of thumb:
Price Up: VA up = clear uptrend VA sideways = moderate uptrend VA down = weak uptrend
Price Sideways: VA up = accumulation VA sideways = no bias VA down = distribution
Price Down VA up = weak downtrend VA sideways = moderate downtrend VA down = strong downtrend