This indicator is called as A/D, accumulation distribution, by some authors. As already discussed this is an approximate of total trade which has been happened in a day. The above formula is derived from the formula of A/D used by Metastock and tradestation as:
The reason why this indicator is used is to check the activity in the market. To check the popularity of stock or just to check if a particular news or incident has had any impact on the price of the stock.
Browse definitions and meaning of more concepts and terms similar to Intraday Intensity Index. The Management Dictionary covers definitions and overview of over 7000 business concepts from 6 categories.