Williams Accumulation/Distribution indicator (Williams’ A/D) – indicator is based on the concept of accumulation and distribution. It is recommended that this indicator be used only for trading price divergences.
Williams describes the A/D indicator’s divergences as price making a new high while the Williams’ A/D indicator fails to make a new high pointing to the start of the distribution phase therefore a short position is placed. Similarly, when price makes a new low by the Williams’ A/D fails to make a new low, it points to the period of accumulation and therefore a long position is taken.
There are no configurable settings for the Williams Accumulation/Distribution indicator, although the calculation is a bit more complex. However, traders should suffice to know that the Williams’ A/D indicator makes use of the closing prices in relation to the volume to plot the values on the oscillator.
Unlike other oscillators, the divergences with Williams A/D tend to be more accurate with the oscillator being adept at capturing the peaks and troughs with precision. The Williams’ Accumulation/Distribution indicator is not a default indicator with MT4 and it needs to be downloaded from the MQL4 codebase repository