Williams Accumulation-Distribution Signals Smoothed by a Moving Average

Summary

This strategy calculates Williams Accumulation/Distribution from changes in the close relative to the prior close and the current bar’s high or low. It smooths that running indicator with a simple moving average, using the indicator’s position above or below the average to define a bullish or bearish state. The strategy enters long in the bullish state and short in the bearish state, with an option to reverse those positions.

The accompanying explanation presents divergence between price extremes and the indicator as an accumulation or distribution clue, but the supplied source’s actual entries are driven by the indicator’s relation to its moving average. The document provides a 14-period default and a BTC/USDT futures backtest window without performance results. It cautions that the indicator can give false signals, parameters may miss turns or create noise, and sudden events can disrupt trades. Stop-loss rules and further indicator confirmation are suggested as possible additions, not as features of the described implementation.

Key ideas

• The Williams accumulation-distribution series is smoothed with a simple moving average.
• An indicator value above its average sets a long bias, while a value below sets a short bias.
• A reverse-trading option can invert the directional positions.
• The divergence rationale is described, although the source’s entries follow the moving-average state.
• The document reports a backtest window but no performance evidence and recommends considering stop losses.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.