| Description |
Developed by Larry Williams, the Williams' Accumulation/ Distribution indicator is used to define if the marketplace is controlled by sellers (distribution) or by buyers (accumulation) and trading when there is discrepancy between the A/D indicator and price.
The formula is defined in Technical Analysis A-Z is:
wmax = max(high,close 1 day ago)
wmin = min(low, close 1 day ago)
if (close > close 1 day ago)
wval = close - wmin;
else if (close < close 1 day ago)
wval = close - wmax
else
wval = 0
Williams Accumulation Distribution =
Williams Accumulation Distribution 1 day ago + wval
Note: some sources multiply wval by the volume. StockFetcher does not include this step and only implements the formula as described by Steven Achelis in Technical Analysis A-Z.
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