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Indicator Guide > Momentum Oscillators > Williams Accumulate Distribute
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Contents > V ~ Z > Williams Accumulate Distribute
Trend & Momentum Oscillators > Momentum Oscillators > Williams Accumulate Distribute

Williams Accumulate Distribute

Steven Achelis, in his book Technical Analysis A-Z, omits volume from the Williams Accumulation Distribution formula and several other websites/ software programs appear to follow this approach. For the benefit of investors accustomed to Achelis’ approach, we have provided both indicators.

Williams Accumulate Distribute, Achelis' version, is not a volume indicator despite the name. It is a cumulative measure of trading range for each period.

Williams Accumulate Distribute is traded on divergences. When price makes a new high and the indicator fails to exceed its previous high, distribution is taking place. When price makes a new low and the WAD fails to make a new low, accumulation is occurring.

The original indicator was created by Larry Williams.

Trading Signals

  • Go long when there is a bullish divergence between Williams Accumulate Distribute and price.

  • Go short on a bearish divergence.

Example

Intel Corporation is plotted with  Williams Accumulate Distribute Williams Accumulate Distribute.

Intel Williams Accumulate Distribute Indicator

Mouse over chart captions to display trading signals.

  1. Go long [L] on bullish divergence.
  2. Go short [S] on bearish divergence.
  3. The divergence is soon followed by a triple divergence where price makes a higher High and the indicator makes a new Low.

Setup

See Indicator Panel for directions on how to set up an indicator. Edit Indicator Settings to alter the default settings.



 
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