Williams Accumulation Distribution

The Williams Accumulation Distribution indicator, by Larry Williams, measures the accumulation of the difference between the upward movements that occurred in a given period in which the price has risen up to very close to the point of closure and those movements in downward that were obtained in the same period, when therefore the price fell to very close to the point of closure.

Upward movements are also called accumulation movements, while downward movements are also known as distribution movements. This indicator allows you to have a signal on the type of control that is done in the market. If more long positions are opened, or more accumulation positions, it is said that control is the prerogative of those who go long. If, on the other hand, more short positions are opened, ie those of distribution, it is said that the market is the prerogative of those who go short. On an operational level, the Williams Accumulation Distribution gives us the BUY signal if it goes to form a positive divergence. If it forms a negative divergence, it gives us the SELL signal.