• Products
• Pricing
• Education
• Indicators
• MyProfile
• Support
• Search

Indicator Guide > Money Flow > Williams Accumulation Distribution
Indicators A ~ Z > Indicators V ~ Z > Williams Accumulation Distribution
Contents > Indicators V ~ Z > Williams Accumulation Distribution
Money Flow & Volume > Money Flow > Williams Accumulation Distribution

# Williams Accumulation Distribution

Williams Accumulation Distribution 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.

Williams Accumulation Distribution was created by Larry Williams.

• #### Go short on a bearish divergence.

##### Example

Commonwealth Bank of Australia (CBA) is plotted with  Williams Accumulation Distribution.

Mouse over chart captions to display trading signals.

1. Go long [L] on a bullish divergence.

## Setup

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

## Formula

To calculate Williams Accumulation Distribution:

1. Calculate the True Range High and True Range Low:

True Range High is the greater of:

• High [today], and
• Closing price [yesterday]

True Range Low is the lesser of:

• Low [today]
• Closing price [yesterday]

2. Compare Closing price to yesterday's Closing price:

• If Close [today] is greater than Close [yesterday]
Price Move [today] = Close [today] - True Range Low
• If Close [today] is less than Close [yesterday]
Price Move [today] = Close [today] - True Range High
• If Close [today] equals Close [yesterday]
Price Move [today] = zero

3. Multiply the price move by volume:
AD [today] = Price Move [today] * Volume [today]

4. Calculate the cumulative total:

#### AUTHOR'S NOTE:

Steven Achelis omits step 3. above in his book Technical Analysis A-Z and several other websites/software programs appear to follow this approach. For the benefit of investors accustomed to Achelis' approach, we have provided both versions. Achelis' version is described as Williams Accumulate Distribute.