Williams Accumulation/Distribution

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Description

Williams' Accumulation/Distribution is a cumulative total of "X" where:

TRH (true range of highs) =
         Yesterday's close or today's high, whichever is greater.
TRL (true range of lows) =
         Yesterday's close or today's low, whichever is less.

If today's close is greater than yesterday's close,
         X = today's close - TRL,
otherwise, if today's close is less than yesterday's close,
         X = today's close - TRH,
otherwise,
         X = 0.

Interpretation

Williams recommends trading this indicator based on divergences.

• Distribution of the security is indicated when the security is making a new high and the A/D indicator is failing to make a new high. Sell.
• Accumulation of the security is indicated when the security is making a new low and the A/D indicator is failing to make a new low. Buy.

Tips

Williams' Accumulation/Distribution indicator is a price indicator. The Accumulation/Distribution indicator is a volume indicator.