Williams Accumulation/Distribution Divergence Signals
Summary
Williams Accumulation/Distribution (W_A/D) is described as a running total of price movement intended to reflect whether buyers or sellers are in control. Its value changes according to the relationship between the current and previous closing prices, using the current close and the true minimum in the calculation. The document gives a brief definition rather than a detailed derivation of the indicator.
The proposed signals look for divergence: a new price high without a new indicator high is treated as possible distribution and a sell signal; a new price low without a new indicator low is treated as possible accumulation and a buy signal. The document provides no performance evidence, parameter guidance, or risk controls, so these are presented as indicator interpretations rather than validated trading rules. It also notes the indicator's MQL4 publication history, which does not add evidence for the signals' effectiveness.
Key ideas
- W_A/D is a cumulative indicator intended to distinguish buying pressure from selling pressure.
- A rising close relative to the previous close increases the indicator using the current close and true minimum.
- A new price high without a corresponding indicator high is described as a possible sell signal.
- A new price low without a corresponding indicator low is described as a possible buy signal.
- The document gives no tests or risk rules to establish the signals' reliability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.