Williams Accumulation/Distribution Smoothing and Directional Signals
Summary
The script calculates Williams Accumulation/Distribution (WAD), smooths it with a simple moving average, and assigns a positive or negative position according to whether WAD is above or below that average. It then submits long or short entries based on that state, with an option to reverse the direction. The plotted indicator, average, and bar colors show the resulting state on the chart.
The accompanying explanation separately describes a divergence approach: a security making a new high while WAD fails to do so is treated as distribution, while a new price low without a corresponding WAD low is treated as accumulation. The script's coded entries compare WAD with its moving average rather than explicitly checking those new-high or new-low divergences. The page offers no performance results, market context, or risk controls, and labels the material educational. Its stated divergence rationale and implemented signal rule should therefore be understood as distinct descriptions.
Key ideas
- Williams AD accumulates price changes using the current close relative to the prior close and prior bar extremes.
- The script smooths Williams AD with a configurable simple moving average.
- It assigns long or short direction according to whether the indicator is above or below its average.
- A reverse setting can invert the signal direction.
- The prose describes price and indicator divergences, which differ from the moving-average rule used by the code.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.