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Williams A-D

About Technical Analysis
By Mohammed Helmy
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Overview :
Accumulation is a term used to describe a market controlled by buyers; whereas distribution is defined by a market controlled by sellers.

Interpretation :
Williams recommends trading this indicator based on divergences:
1- Distribution of the security is indicated when the security is making a new high and the A/D indicator is failing to make a new high. Sell.
2- Accumulation of the security is indicated when the security is making a new low and the A/D indicator is failing to make a new low. Buy.

Example :
The following chart shows Proctor and Gamble and the Williams’ Accumulation/Distribution indicator.

A bearish divergence occurred when the prices were making a new high (point “A2”) and the A/D indicator was failing to make a new high (point “A1”). This was the time to sell.

Calculation :
To calculate Williams’ Accumulation/Distribution indicator, first determine the True Range High (“TRH”) and True Range Low (“TRL”).

Today’s accumulation/distribution is then determined by comparing today’s closing price to yesterday’s closing price.
1- If today’s close is greater than yesterday’s close :

2- If today’s close is less than yesterday’s close :

3- If today’s close is equal to yesterday’s close :

The Williams’ Accumulation/Distribution indicator is a cumulative total of these daily values.

You can now benefit from LDN company’s services through the LDN Global Markets trading platform.

Mohammed Helmy

I’m a Trader with 17 years of experience in the most of Financial Markets ( Equities, Commodities , Forex). I have worked on integrated campaigns for major clients such as Al Horria brokerage, Venus International and Admiral Markets.
Until recently, I Trade in Only the International Markets industry. In this role I was focused on Trading and Portfolio Managing .Successes included creating a social expert to mange the accounts of my clients automatically decisions.
Colleagues know me as a highly creative Trader who can always be trusted to come up with a new techniques . But I know that the client’s business comes first, and I never try to impose my ideas on others. Instead, I spend a lot of time understanding and collecting data about the several markets I can work well alone, but I’m at my best collaborating with others.
I have a PhD from AIN SHAMS University and a Cfte1 from the International Federation of Technical Analysts IFTA.

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