A volume indicator that weights where a bar closes within its daily range by the volume behind it, exposing the accumulation and distribution running beneath price. It tracks whether heavy volume lands on days that close near the high or near the low.
The Intraday Intensity Index (II) was devised by David Bostian as a volume-based study.
Where OBV looks only at the close-to-close change and throws a day's entire volume to the plus or minus side, II goes one layer deeper.
It measures where the close lands within the day's range (from high to low) and multiplies that position by the day's volume.
A day that closes near the top of its range is evidence that buyers held the upper hand into the close. If that day's volume is heavy, the force of accumulation is read as large.
A day that closes near the low, by contrast, shows sellers in control, and the heavier the volume, the stronger the distribution pressure.
How to Read
NASDAQ:AAPL
In spirit, II belongs to the same family as Chaikin's Accumulation/Distribution Line (A/D Line).
Both combine the close location within the bar with volume to make visible the quiet accumulation and distribution that build beneath price.
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