Calculate and Interpret the Close Location Value (CLV)

By Stock Research Pro • October 9th, 2009


Close location value (CLV) is a measurement used in technical analysis to measure the closing price of an asset is relation to its high and low prices for the day. The CLV calculates within a range between +1 and -1, where a measure of +1 means that the closing price was equal to the day’s high (a bullish signal) price and -1 was equal to the day’s low price (a bearish signal).

Calculate the Close Location Value

The formula for the close location value can be written as:

CLV= ((Close – Low) – (High – Close)) / (High – Low)


Close = Closing price for the day
Low= Low price for the day
High= High price for the day

Close Location Value and the Accumulation/Distribution Line

The close location value is best known as a factor in calculating the accumulation/distribution line, a technical indicator used to measure the rate at which money flows into or out of a security. Accumulation/ distribution incorporates volume to confirm price trends or caution of movements that indicate a pending price reversal.

Accumulation: Volume is considered “accumulated” when the closing price for the day is higher than the closing price for the previous trading day.

Distribution: Volume is considered “distributed” when the closing price for the day is lower than the closing price for the previous trading day.

The “volume” part of the Accumulation/Distribution Line is factored in by multiplying volume for a given period by the close location value.


The above information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a financial or tax advisor.


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