Williams Accumulation/Distribution

Williams' Accumulation-Distribution tracks buying pressure (accumulation) and selling pressure (distribution) on a security.  With accumulation, most of the volume is associated with upward price movement. 

Williams' Accumulation-Distribution

Williams' Accumulation-Distribution tracks buying pressure (accumulation) and selling pressure (distribution) on a security.  With accumulation, most of the volume is associated with upward price movement.  With distribution, most of the volume is associated with downward price movement.  The pressure is determined by where the close sits within today's true range.

 


Williams' Accumulation-Distribution Formula

The formula for the  Williams' Accumulation/Distribution indicator starts with determining the True Range High ("TRH") and True Range Low ("TRL").

The Williams Accumulation/Distribution indicator is then calculated by adding today's close and subtracting TRL or TLH depending on whether today's close is greater than or less than yesterday's close.  If the close is the same for the two days then there is no change to the indicator.



Williams' Accumulation-Distribution Interpretation

With accumulation, most of the volume is associated with upward price movement.  With distribution, most of the volume is associated with downward price movement.  The pressure is determined by where the close sits within today's true range.

Williams' Accumulation-Distribution is used in a fashion similar to On-Balance Volume whereby divergence between price and indicator are used to signal buy and sell signals.

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