Индикаторы Williams % Range, Williams A/d

Description

The Williams Accumulation/Distribution study is used to determine either the marketplace is controlled by buyers (accumulation) or by sellers (distribution). Its initial value is zero. If the Close price exceeds the Close price one bar ago, a distance between the Close price and the True Range bottom is added to the indicator. If the Close price is less than the Close price one bar ago, a distance between the close and the True Range top is subtracted from the indicator. If the Close price is unchanged, the indicator is unchanged as well.

This study may be analyzed for divergences between the value of the indicator and the price. If the price is making lower lows but the indicator fails to make lower lows, this may be an indication of a bullish reversal. Similarly, if the price is making higher highs but the indicator fails to make higher highs, a bearish reversal might occur.

Plots

Example*

*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.

DXcharts powers DXtrade, DXfina, and FinCharts.

Check our website to find more information about DXcharts library.

Williams Accumulation/Distribution (Williams AD) is an indicator that measures market pressure i.e. whether an asset is accumulated (buyers pressure prevails) or distributed (sellers pressure prevails). The indicator may be used for analyzing divergences with price: when the price makes a new low, but the indicator doesn't, the price is likely to turn up, and vice versa.

Williams AD uses True Range High (TRH) and True Range Low (TRL) values during calculation. TRH is the greatest of yesterday's close and today's high, while TRL is the least of yesterday's close and today's low. The indicator compares today's close price to yesterday's close price:

• If today's close is greater than yesterday's close, the indicator adds the difference between today's close and TRL. 
• If today's close is less than yesterday's close, the indicator adds the difference between today's close and TRH. 
• If today's close is equal to yesterday's close, the indicator is unchanged.

The indicator then calculates a cumulative total of these values and plots a line starting from the zero level.

Today's A/D / today's colse - TRL
Today's A/D / today's close - THR
Today's A/D = 0
Williams AD = Today's A/D + Yesterday's Williams A/D

where:
THR – True Range High
TRL – True Range Low

Williams Accumulation/Distribution

PLOTS

The plot renders the data you are working with on the chart. You can show/hide a plot by clicking the corresponding item in the settings. Every plot has a set of basic settings that you can change: color, weight, and type.

Color
Click the color rectangle under the plot's name to open the palette. Use the slider at the bottom to set the opacity of the color. Palette To create a custom color: Clickto open the color picker By using the slider at the bottom, adjust the main color Then, set a shade for the main color on the palette The custom-created colors are added to your palette. To remove a custom color, drag it out of the palette.
Weight
Change the value (in px) to adjust the thickness of the plot.
Type
The following plot types are available: Linear. The plot is displayed as a line. Column. The plot is displayed as a histogram. Difference. The plot is displayed as a line which represents the difference between High and Low prices of the bar. Points. The plot is displayed as points. Text above candle. The plot is displayed as the price labels above candles on the chart. Text below candle. The plot is displayed as the price labels below candles on the chart. Triangle above candle. The plot is displayed as triangles above candles on the chart. Color candle. The candles on candle-type charts are highlighted with specified colors.

OVERLAYING

Check Overlaying to display the indicator on the chart. Otherwise, the indicator is shown in a study pane down below.

Note: To reset the settings, click Restore to Default next to the SETTINGS: INDICATOR'S TITLE

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:

• 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.

• 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.

If today's close is greater than yesterday's close:

If today's close is less than yesterday's close:

If today's close is equal to yesterday's close:

The Williams' Accumulation/Distribution indicator is a cummulative total of these daily values.

Williams Accumulation Distribution is traded on divergences. When price makes a new high and the indicator fails to exceed its previous high, distribution is taking place. When price makes a new low and the WAD fails to make a new low, accumulation is occurring.

Williams Accumulation Distribution was created by Larry Williams.

Trading Signals

• Go long when there is a bullish divergence between Williams Accumulation Distribution and price.
• Go short on a bearish divergence.

Example

Commonwealth Bank of Australia (CBA) is plotted with     Williams Accumulation Distribution.

Mouse over chart captions to display trading signals.

1. Go long [L] on a bullish divergence.

Setup

See Indicator Panel for directions on how to set up an indicator. Edit Indicator Settings to alter the default settings.

Formula

To calculate Williams Accumulation Distribution:

1. Calculate the True Range High and True Range Low:

    True Range High is the greater of:

• High [today], and
• Closing price [yesterday]

    True Range Low is the lesser of:

• Low [today]
• Closing price [yesterday]

2. Compare Closing price to yesterday's Closing price:

• If Close [today] is greater than Close [yesterday]
  Price Move [today] = Close [today] - True Range Low
• If Close [today] is less than Close [yesterday]
  Price Move [today] = Close [today] - True Range High
• If Close [today] equals Close [yesterday]
  Price Move [today] = zero

3. Multiply the price move by volume:
AD [today] = Price Move [today] * Volume [today]

4. Calculate the cumulative total:
Williams AD = AD [today] + Williams AD [yesterday]

AUTHOR'S NOTE:

Steven Achelis omits step 3. above in his book Technical Analysis A-Z and several other websites/software programs appear to follow this approach. For the benefit of investors accustomed to Achelis' approach, we have provided both versions. Achelis' version is described as Williams Accumulate Distribute.