Williams Accumulation Distribution
Williams Accumulation Distribution Interpretation:
Accumulation results in a market controlled by buyers and Distridution results in a market controlled by sellers. The A/D gives good divergence signals. A sell signal is given when a bearish divergence appears. A bearish divergence occurs when the stock price makes new highs while the A/D falls to make new highs.
A buy signal is given when a bullish divergence appears. A bullish divergence occurs when the stock price makes new lows while the A/d fails to make new lows.
Williams Accumulation Distribution Calculation:
TRH = the highest of (yesterday's close or today's high) TRL = the smallest of ( yesterday's close or today's low)If the today's close > yesterday's close then A/D = today's close - TLRIf the today's close < yesterday's close then A/D = today's close - TRHIf the today's close = yesterday's close A/D = 0, A/D William = today's A/D + yesterday's A/D
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