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Developed by Larry Williams, the Williams' Accumulation/Distribution(WAD) indicator is used to determine if the market is controlled by buyers (accumulation) or by sellers (distribution) and trading when there is divergence between price and the A/D indicator.

Williams recommends buying when prices fall to a new low yet the WAD fails to reach a new low. Likewise, sell when the price makes a new high and the indicator fails to follow suit.

 

Calculation:

WAD = AD + PrevWAD

         TRH = Max(PrevClose; High)

          TRL = Min(PrevClose; Low)

          If Close>PrevClose then AD = Close – TRL

          If Close<PrevClose then AD = Close – TRH

          If Close=PrevClose then AD = 0

 

Inputs: None

 

Indicator Type: Momentum