Williams' Accumulation/Distribution [WA/D]

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The Williams' Accumulation/Distribution function determines the momentum of a financial data series using movement of the closing price away from the high or low price. Parameters ------------------ Close           The closing price of the security for each given day. High            The high price of the security for each given day. Low             The low price of the security for each given day. Note that while this function is intended for use with these specific values, any values can be used for these parameters, including other price values and averaged prices. Indicator Value ------------------------ The Williams' Accumulation/Distribution indicator calculates the movement of the closing price away from the high or low price. When the closing price increases, the value increases by the current True Range High minus the current close. When the closing price decreases, the value decreases by the current close minus the current True Range Low. If the closing price is unchanged, the value does not change. The value for each new day is added to the previous value, with the initial value being zero. The current True Range High is the current high or the previous close, whichever is greater. Similarly, the current True Range Low is the current low or the previous close, whichever is lower. These values will typically be the current high or low, but they take into account large jumps during off-hours trading. The value at the beginning of the data series is not defined for the first day since the True Range High and Low use the closing price of the previous day. Usage ----------- The Williams' Accumulation/Distribution indicator is used for determining when a security is primarily being bought (accumulated) or sold (distributed). However, unlike the similarly named Accumulation/Distribution indicator, it does not use volume information in its calculation. As with other momentum indicators, entry/exit signals can be generated when divergences from the underlying price data is detected. Source ------------ This indicator is based on an entry in "Technical Analysis From A To Z" by Steven B. Achelis. It was originally developed by Larry Williams.